Nastasic joined Schalke on a season-long loan from the Etihad but the German club have now taken up their option of making the move permanent.

The central defender moved to the Budesliga in January after falling out of favour at City under manager Manuel Pellegrini, playing just one match this season in the 3-0 Community Shield defeat to Arsenal.

“I am proud and happy that I remain at Schalke,” Nastasic told the club’s official website.

“The team did very well taking me from day one, I was immediately a part of the team.

“In the future I would like to help us to achieve our goals as a team.”