Gelson will join City on their tour of Sweden
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Manchester City have signed Switzerland Under-21 captain Gelson Fernandes from FC Sion for an undisclosed fee.
The 20-year-old midfielder is Sven-Goran Eriksson's second signing since taking over as Eastlands boss following Rolando Bianchi.
"He's the best young player in Switzerland," said Eriksson.
"We have signed two young players and I hope the supporters are happy. That is the way we need to go because young players are the future of the club."
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Fernandes, who was also thought to be a target for Newcastle and Bolton, will join his new team-mates on City's pre-season tour of Sweden.
Eriksson continued: "Fernandes is the best young talent in Switzerland and I am very happy he is here. I plan to play him in a holding role."