Bolton's Zach Clough in talks with Bristol City, Mark Davies in talks with Sheffield Wednesday

Bolton youngster Zach Clough is in talks over a move to Bristol City after the clubs agreed a fee of £3m for his transfer, according to Sky sources.

The Trotters, at the bottom of the Championship and in financial turmoil, need to sell players and Clough is reportedly of interest to several other clubs in the same division including Birmingham, Reading and Sheffield Wednesday.

But sources have confirmed to Sky Sports News HQ that Bristol City have lodged a bid and are now speaking to the player over a move to Ashton Gate.

Bolton face a winding up order due to be heard in the High Court on January on an unpaid tax bill of around £2.2m.

And manager Neil Lennon confirmed ahead of his side's FA Cup third round clash at non-league Eastleigh that Clough had been omitted from the squad after the offer.

He told BBC Radio 5Live on Saturday: "There was a bid in yesterday for Zach and that's why he's not travelled.

"From a manager's point of view that's a big blow, but we've got to safeguard the future of the club first and foremost."

Lennon spoke to Clough earlier this week about his future and admitted the forward was experiencing a "difficult time" while his name was mentioned repeatedly in media reports and gossip columns.

Clough has been with Bolton since the age of eight and signed a contract extension at the Macron Stadium in November that takes his current deal up until 2019.

Midfielder Mark Davies was another left out of the squad and is understood to be on the verge of a move to Sheffield Wednesday.

Press Association Sport understands the two clubs have struck a deal to allow him to move to Hillsborough and that will be completed in the coming days if Bolton's longest-serving player passes a medical and agrees personal terms.