City have already upgraded key striker Bruno Fornaroli to marquee status this season and with Tim Cahill having the league rules re-written to afford him “guest marquee” status, the club has one non-salary cap spot left after the departure of Aaron Mooy to Huddersfield.
In June, Colazo was still being linked with three Serie A clubs - Atalanta, Chievo and Torino - who could all take advantage of the player having an Italian passport.
However, that talk has gone quiet in recent weeks, and The World Game has been told that Colazo has been tabled a contract in the region of $450,000 per season by City. It’s understood that will be enough to persuade him to move to the A-League.
It has been speculated in Argentina that Colazo could arrive in Australia as early as this week to undergo a medical and arrange final terms.
City are in desperate need of left-sided players, having lost Michael Zullo to Sydney FC and Jack Clisby to the Western Sydney Wanderers. They also sold lively winger Harry Novillo to Manisaspor.
While defender Josh Rose was signed from the Central Coast Mariners, the 34-year old is expected to be no more than a bit-part player this season, leaving the door ajar for Colazo to slot straight into the first team.
Colazo’s agent, Sergio Levington, has claimed his player has several offers on the table from other clubs in Argentina but the collapse of the domestic economy means wages are far more lucrative abroad.
While the fall of the Australian dollar has made it much harder to attract players from abroad, the Argentine peso has gone into comparative freefall, losing more than 50 per cent of its value since December.
Colazo has played his whole career with Boca Juniors - save for a loan spell in 2013 with All Boys - but now finds himself without a guaranteed place in the first team.
Colazo’s agent began looking elsewhere to see what other options could be available to his client after manager Guillermo Barros Schelotto and his assistant, twin brother Gustavo, allowed him to find a new home.
“Colazo is under contract until December 2017 with Boca but he is a player who is not in the plans of Guillermo and Gustavo and the idea is to seek club and have an exit option,” Levington said in June. “Boca wants to sell the player. It is interesting for the European and Mexican markets and [in Chile] we have contacted Colo Colo, Universidad de Chile and Universidad Católica.”
If City can successfully persuade Colazo to sign, he will become the club’s third Argentinian player, following on from Jonatan Germano - who now plays with Avondale in the Victorian NPL - and recently signed midfielder Fernando Brandán.