Arsenal are reported to be chasing long-term target William Carvalho.
The Sporting Lisbon midfielder, 22, can also play at centre-back and the Gunners were heavily linked with a move for the Portuguese in the summer window, but he was deemed too pricey by Arsene Wenger.
Sporting did want more than £30million for Carvalho, but the Daily Star say that Wenger is preparing to submit a £25.5m bid.
We reported that Wenger is lining up a £9m bid for Newcastle midfielder Moussa Sissoko, but that will be rejected by the managerless club.
Wenger has made a defensive midfielder his top priority in the window, and the Gunners are also linked with Atletico Madrid's Mario Suarez.
The 27-year-old was a key part of Diego Simeone's team last season but has fallen out of favour this term - El Chiringuito TV reported that Arsenal could be preparing a cut-price move for Spaniard.
Manuel Pellegrini will make a move for Wilfried Bony in January as he attempts to seek adequate cover for injured star Sergio Aguero. The Daily Telegraph report that Manchester City are lining up a £30m bid for the striker who scored more Premier League goals in 2014 than any other striker.
However, according to The Times, Chelsea are also interested in the Swansea City man.
Out of favour centre-back Matija Nastasic could also leave City for Schalke, according to the Manchester Evening News.
Brendan Rodgers wants to sign the 'new Sergio Aguero' from La Liga, Villarreal's Argentine striker Luciano Vietto. The 21-year-old has been hugely impressive for the Yellow Submarine this season scoring 12 goals in 23 matches in all competitions.
The Daily Mirror report Brendan Rodgers will need to pay £12m for the striker.
Liverpool are also among a trio of clubs are chasing AC Milan youngster Stephen El Shaarawy, with the Daily Express reporting that Arsenal and Manchester United are also interested in the Italian striker.
The 22-year-old has struggled with injury since bursting onto the scene in 2012 and has scored just one Serie A goal in the last 22 months - he could be available for £11.5m, the paper reports.
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