Thiago should sign after Bayern win the CL.
He isn't gonna leave before then.
I agree, nothing will happen until Bayern win/out of the CL, he is playing for them in the team, so I am guessing he is focused on that and agents/clubs etc will not be allowed to contact him, so we will have to wait and see.
I think City may go in for him, Pep has worked with him before and loves him, with City's recent problems and losing the likes of Silva, he would be the perfect replacement for them, also stops us getting stronger.