Bologna have been granted permission by Celtic to speak to forward Rocco Vata and agree terms on a move to Italy, sources have told Football Insider.
The Serie A club are working on a deal to sign the 18-year-old, whose Hoops contract expires in the summer.
The Irish youth international is now eligible for pre-contract talks with clubs outside of Scotland and it is believed Bologna are in pole position to sign him.
Celtic have now given up hopes of keeping the striker, who has knocked back multiple offers to extend his contract with the Glasgow giants.
While Bologna look most likely to sign the Irishman, they face competition for his services from Atalanta, Frosinone and Sampdoria.
Celtic knocked back multiple bids for Vata last summer and now face losing him for a compensation fee of £343,000.
Vata has not made a senior appearance for Brendan Rodgers’ side this season but has bagged 13 goals in 20 appearances in all competitions for their B team.
He emerged as a top talent through the youth system at Parkhead after joining in 2012.
The teenager has earned four senior appearances for the club since he made his debut in December 2022 against Hibernian.
His performances have earned him frequent caps for Ireland’s youth sides, with his last appearance being with the under-19s in a European Championship qualifier against Belgium in November.
Vata, the son of former Celtic and Albania defender Rudi Vata, has played as a centre-forward and an attacking midfielder for the Hoops this season.
Celtic sit top of the league during the winter break after their 3-0 win against St Mirren and next face Buckie Thistle in the fourth round of the Scottish Cup on 21 January.