Real Madrid have still not given up in their pursuit of Liverpool midfielder Xabi Alonso, with the coach of the Spanish club Manuel Pellegrini insisting: “We are interested.” Real have also decreased their offer for the player by £3m to £22m.

Chelsea will hold intensive talks with captain John Terry as they fear the centre-back is ready to quit to join Manchester City but the Blues will not increase England skipper Terry's wages in an attempt to keep him at Stamford Bridge.

Carlos Tevez is set to complete a £25m move to Manchester City. The Argentine striker’s move will leave Chelsea disappointed.

Manchester United are moving closer to signing 20-year-old Brazilian midfielder Douglas Costa from Gremio.

Aston Villa look set to sign Middlesbrough winger Stewart Downing for £12m this week, raising questions over the future of Ashley Young at Villa Park. Striker Young is wanted by Tottenham, but they could lose out to Manchester United or Chelsea.

Villa may also be set to lose defender Zat Knight, with Wolves ready to join Bolton in a battle to sign him.

Hull have inquired about Cardiff striker Ross McCormack after missing out on Fraizer Campbell, Michael Owen and Marc-Antoine Fortune.

Portsmouth are interested in signing Tottenham right-back Pascal Chimbonda and are ready to pay £2.5m for him.

Hull are hoping to hijack Ipswich’s £3m move for Sunderland striker Daryl Murphy.

Sunderland have made an increased bid of just under £6m for Wigan midfielder Lee Cattermole, having had an initial bid of £4m turned down.

Middlesbrough winger Adam Johnson has been told there is no way he will be allowed to leave to join Chelsea.

Sunderland boss Steve Bruce is set to switch his sights from Manchester City defender Richard Dunne to Tottenham centre-back Michael Dawson.

Liverpool’s young French midfielder Damien Plessis is wanted on loan by Cardiff as a replacement for Joe Ledley, who has been linked to Everton, Hull and Stoke.

Stoke City are continuing to pursue West Ham striker Dean Ashton, who is making a return from injury.