Arsenal are expected to fail in their bid to sign Liverpool winger Raheem Sterling after Manchester City joined the race for the 20-year-old.
According to Fichajes.net, the Citizens are ready to use striker Edin Dzeko as part of the deal that would see the Englishman join Manuel Pellegrini's side.
Spanish giants Real Madrid are also interested in the youngster who would however prefer to stay in the English Premier League.
Meanwhile, former player and manager Glenn Hoddle says Sterling should stay at Liverpool and turn down lucrative offers from the likes of Arsenal and Manchester City.
"If he goes to another club ... I just think youngsters are getting very good money, he's getting great money, he's been offered great money at Liverpool anyway, he can catch that up much later in his career if he looks after himself," Hoddle said on The Clare Balding Show.
"I think there is a foundation you have to put in as a youngster and that foundation eventually will work for you for a longer period of time. I just hope that if he does move that he continues to progress, he is nowhere near the finished article.
"He's a fabulous player, his potential is there, he could be a marvellous player but I think this is a real key moment and I would sit him down and say look, we've got to think about this, in your heart what do you really want?
"The money will come, nowadays the money is going to come."
