The 18 year old winger has agreed to join the club and City are in talks with his club Breidablik about the costs of bringing him to the Ricoh Arena.
As he is under the age of 24, there will be development costs which the Icelandic club are entitled to and it is believed these which have slowed down the deal.
"It is still on-going and we are taking about development costs and compensation because he is only eighteen," said Ray Ranson to the CT.