Colorado Rapids nearing deal to sign Djordje Mihailovic for club-record fee:

The Colorado Rapids are nearing a deal to sign U.S. men’s national team attacking midfielder Djordje Mihailovic from AZ Alkmaar, sources briefed on negotiations tell The Athletic. The Rapids will look to finalize the agreement in the coming days.

Colorado will pay a club-record transfer fee north of $3 million to AZ for Mihailovic, who will be a designated player (DP). Mihailovic still needs to complete a medical before the deal can go official. AZ Alkmaar announced Tuesday that Mihailovic would be absent from the first team as he awaited a transfer out of the club.

A bevy of MLS teams were interested in signing Mihailovic, including the Portland Timbers, Chicago Fire, FC Cincinnati, LAFC and the New York Red Bulls, sources say.

Mihailovic, 25, joined AZ from CF Montréal last January for a reported $6 million fee, but has struggled to get a foothold in the starting lineup in the Netherlands. He has made three starts (eight appearances) in AZ’s 16 league games this year, accumulating just 275 minutes.

Mihailovic is a product of the Chicago Fire’s academy and broke into the first team there, but excelled in Montréal with 16 goals and 21 assists in 68 appearances across two seasons after arriving in a trade. He has made 132 MLS appearances in his career and has earned 11 caps with the U.S. men’s national team.

Mihailovic’s arrival would continue an offseason overhaul for Colorado alongside the acquisitions of USMNT goalkeeper Zack Steffen, who The Athletic reported Wednesday has signed from Manchester City, former New York Red Bulls homegrown midfielder Omir Fernandez who signed as a free agent and Chris Armas, who was hired as head coach. The Rapids have also parted ways with veterans Jack Price, Diego Rubio, Danny Wilson and others.

The Rapids’ on-loan forward Rafael Navarro has a $4.5 million purchase option, which would become the Rapids’ new club record if triggered.

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