Manchester City are reportedly prepared to offer Jack Grealish as well as a hefty transfer fee to Milan for in-demand forward Rafael Leao.

Leao, 23, has scored six goals with five assists in his 14 Serie A fixtures this campaign, following a 2021-22 season where he contributed 11 goals and 10 assists in 34 league appearances.

Meanwhile, 27-year-old Grealish has been trending in the opposite direction, with the most expensive Englishman in football history only playing a complete 90 minutes in two of his 10 Premier League outings this season.

Chelsea have reportedly already seen a £62million (€70m) bid for Leao brushed off by Milan, who have apparently said they will wait for someone to meet his £133m (€150m) release clause, though a new report suggests City could be ready to make their move for the Portugal international.

TOP STORY – CITY PREPARED TO OFFER GREALISH IN BID FOR LEAO

While it remains to be seen exactly what price Milan would be happy to part ways with for their young star, City reportedly feel they have an ace up their sleeve in negotiations due to their willingness to send over a replacement player as part of their offer.

According to Calciomercato, City are willing to offer a package of Grealish plus cash to Milan for Leao, and the same outlet reported on December 6 that Milan had interest in Grealish in the event of Leao's departure.

Further reporting from Football Insider has stated City are looking to recoup £60m of their £100m initially spent on Grealish for a potential pursuit of Jude Bellingham.

ROUND-UP

– According to L'Equipe, Napoli are the leading candidates to land 22-year-old Angers midfielder Azzedine Ounahi, while the Express adds Leicester City will also mount a charge for the Morocco standout if Youri Tielemans leaves in January.

– Media Foot is reporting Everton are in discussions with Montpellier about a potential £22m (€25m) move for 20-year-old striker Elye Wahi, who has represented France at the under-19 level.

– Manchester United are one of the clubs keeping a close eye on 25-year-old Borussia Monchengladbach striker Marcus Thuram after reports the French international will be available for just £10.6m (€12m) in January as he enters the final six months of his contract, per the Daily Mail. 

– Sport Arena is reporting Arsenal have agreed to a five-year contract with 21-year-old Shakhtar Donetsk winger Mykhaylo Mudryk. 

– According to Fichajes, Barcelona midfielder Frenkie de Jong has had a change of heart and would now like to join Man Utd at the end of the season.

Erling Haaland and Julian Alvarez playing together could help Manchester City to break down teams who sit back against them, according to Pep Guardiola.

City lost ground in the title race on Saturday after drawing 1-1 at home to struggling Everton, with leaders Arsenal then extending their advantage at the Premier League summit to seven points with a 4-2 victory at Brighton and Hove Albion.

Haaland had given City the lead against the Toffees, but Demarai Gray scored a superb strike to peg the champions back and hold them to just a point, putting another dent in their title hopes after losing at home to Brentford in the final game before the World Cup break.

In his attempts to win the game, Guardiola brought on World Cup winner Alvarez up top with Haaland in the 87th minute, and though it did not reward him with three points on this occasion, he says he may have to start the pair if they are to improve their results at home.

"You have two strikers who are going to score goals," City boss Guardiola said after the game.

"To create the chances you have to make the process and for the process sometimes you need other types of players to create these chances.

"But of course they can play together - especially in defence against five at the back they can play together.

"In the last minutes when it is 1-1, we needed people in a central role, in and around the box, and that's why he [Alvarez] played."

Phil Foden has come off the bench in all three of City's games since returning from the World Cup, with England team-mate Jack Grealish preferred to start over him in the last two league matches.

Asked whether Foden needs to adapt to be included in his starting line-up, Guardiola replied: "No, Phil can play in a thousand, million positions.

"When I am in the pitch and in the training sessions, I see something with my intuition and I decided to play with Jack for these games because Jack give us extra, extra, extra passes.

"When it is more vertical, Phil is better, so both can combine, both can play together but this time I decided on this line-up."

Manchester City are not worried about the Premier League title race despite losing ground on Arsenal, so says Manuel Akanji.

Pep Guardiola's side were held to a 1-1 draw by Everton at the Etihad Stadium on Saturday, after Erling Haaland's finish was cancelled out by Demarai Gray's superb strike.

With Mikel Arteta's Arsenal claiming a victory against Brighton and Hove Albion it means the gap is now seven points to the summit for reigning champions City.

Akanji, though, is not concerned, with City having not yet faced their title rivals.

"It's the midway point of the season," he told City's official website. "Of course, Arsenal are in first but in the end, there are lots of games to play.

"We have to play them twice. We'll keep the pressure up and try to win our next game and keep on going. There's still a long way to go."

Not for the first time, City saw their firepower neutralised by cracks in their defensive line, with Gray's goal the only shot on target Everton mustered.

That their domination on the ball was undone by a lapse at the back is not lost on Akanji, who believes they must bank clean sheets to stay in the mix.

"We had enough chances, and we've got to keep the clean sheet in a game like this," he added. "We can't give the opponent the opportunity to score.

"It's something we have to [do] better in the next game. One point is not enough out of these 90 minutes.

"We tried to dominate the game. I think we did it pretty well and had enough opportunities to score a goal. In the end, we have to manage to keep the clean sheet.

"There's going to be some tough games where the opponent is defending well, and we've got to do a better job. We have to be more focused

"If we can do that, we might be better the next time. It's something we have to improve."

Arsenal are unlikely to be stopped in their quest to win a shock Premier League title, according to their former midfielder Paul Merson.

The Gunners impressively moved into a seven-point lead at the top of the table with a 4-2 victory at Brighton and Hove Albion on Saturday.

Draws for Manchester City and Newcastle United earlier on New Year's Eve gave the Gunners a chance to increase their lead at the summit.

And they grabbed it with both hands at the Amex Stadium, Bukayo Saka setting them on their way with a goal after only 66 seconds.

Inspirational captain Martin Odegaard doubled Arsenal's lead and Eddie Nketiah added a third goal, with Gabriel Martinelli getting in on the act either side of strikes from Brighton duo Kaoru Mitoma and Evan Ferguson.

Arsenal are sitting pretty after five consecutive top-flight wins and face third-placed Newcastle at home on Tuesday in a crucial contest.

Merson believes the title battle is already a two-hose race between Arsenal and City, with his backing going to the Gunners despite Pep Guardiola’s champions remaining favourites with the bookmakers.

"I think they'll beat Newcastle," Merson said to Sky Sports. "They've just won two games, scored seven goals, confidence is high. 

"They've won every game at home this season in the league - that's some doing.

"Arsenal are good to watch, it's not a fluke. You've got to look at Man City, they've lost at home to Brentford and drawn at home to Everton who are on a bad run. 

"They are two games City are expected to win. That's five points dropped. I don't see anyone stopping Arsenal at the moment."

Wins over West Ham and Brighton since the World Cup break have delighted Merson, as Arsenal bid to win a first league crown since their 'Invincibles' team tasted success in 2004.

He added: "When we stopped for the World Cup you thought this could only harm Arsenal. They were flying. They've come back and scored seven goals in two games.

"They've got a platform, it's in their hands. I know there's a long way to go, but there are big teams in this league who can't win it - Chelsea, Liverpool, Tottenham, probably Man United.

"It's out of Arsenal and Man City unless the other teams go on the most extraordinary run you've ever seen in Premier League history.

"Who goes to Brighton and scores four goals? Arsenal are playing great football and at the moment, they're the best team in the country and the number one team.

"They've given themselves a little gap where they can afford to lose a few games. Man City are not going to win every game, so Arsenal are right in this, I couldn't talk highly enough about them.

"This is not a fluke, they are where they are because they are a very good football team.

"They went to Old Trafford and got beat, and I didn't think they deserved to. There are ways of losing matches and they bounced back.

"The other night, they went 1-0 down to West Ham and they came back and brushed them aside."

New Year's resolutions are easy to set but far less easy to keep.

But in order to enjoy a prosperous 2023, it will be vital for some to change their ways in the 12 months ahead.

That does not apply to everyone, and Premier League champions Manchester City will be sitting comfortably, even with ground to make up in the title race.

For those hoping to match Pep Guardiola's men, however, Stats Perform has identified some goals for 2023...
 

Save more money – Manchester United

The January sales make it difficult to save at this time of year, and Erik ten Hag has already outlined his desire to see a new striker brought in before the end of the month.

But if United reflect on past years, they might acknowledge that simply spending huge amounts is not a fix for their problems on the field.

In theory, Cristiano Ronaldo's departure has left a hole, except he was not in Ten Hag's first team anyway. The United manager might be better served making good use of Marcus Rashford and Anthony Martial rather than rushing to buy a player unlikely to be drastically better at great cost.

Exercise more – Chelsea

A cold January provides plenty of excuses not to head out for a run, but Chelsea would love to be able to put their key men to work. Instead, they have too often been injured.

N'Golo Kante remains out, and Reece James and Ben Chilwell have missed a huge chunk of the season. James returned this week but lasted little over 50 minutes before feeling another knee injury, while Wesley Fofana is also out again.

Chelsea will spend in January, but their hopes of recovering a Champions League charge will depend on being able to have existing players back fit again.

Learn a new skill – Darwin Nunez

Liverpool also have persistent injury problems, with Luis Diaz and Diogo Jota still on the sidelines, but they should still have more than enough to really push for a top-four finish.

While the signing of Cody Gakpo helps in that regard, Liverpool's season might be shaped by Nunez's ability to score consistently at this level.

Nunez is among the Premier League's most prolific shooters but has repeatedly squandered big chances. That goalscoring knack is not easy to learn, yet Liverpool need their big pre-season signing to do exactly that.

Live life to the fullest – Arsenal

Arsenal fans have spent years complaining about their team, with no league title since 2004 and no hope of a title challenge since 2016.

They are now sitting pretty at the top of the table heading into 2023, so it is time to enjoy it. There is no guarantee the Gunners will be able to hold off City – or Newcastle United – but this has already been a season to remember.

Even if Mikel Arteta's men slip away and merely secure a return to Champions League football, supporters must recognise this for the successful campaign it is.

Get organised – Tottenham

If rivals Spurs are to join Arsenal in Europe's elite club competition next season, they simply must become more organised – not something you would necessarily associate with an Antonio Conte side.

Rather than post-Christmas clutter, Tottenham's biggest issue is their defence, repeatedly conceding cheap goals that give Harry Kane and Co. a mountain to climb.

The quality of Kane, Son Heung-min and the rest ensures Spurs remain in the mix regardless, but there is too much competition this season for Spurs not to be punished if they continue with these defensive lapses.

Travel more – Newcastle United

Newcastle have emerged as surprise contenders this season – contenders for what exactly we and they are not yet sure.

But for all the optimistic talk of a title surge or Champions League qualification, Newcastle simply must secure European football now to continue their progress.

Although it is an aim that might have appeared optimistic at the start of the season, the Magpies cannot miss out from this commanding position, needing to be travelling Europe to keep Bruno Guimaraes and Sven Botman and attract similarly exciting talents.

Arsenal took advantage of Manchester City again failing to win a New Year's Eve game as the Gunners stormed seven points clear at the top of the Premier League.

A 4-2 win at Brighton and Hove Albion did the job for Arsenal after Pep Guardiola's men were held 1-1 at home by Everton, meaning City remain winless in all five of their Premier League games played on December 31, drawing four and losing one.

Third-placed Newcastle United also took a stumble, drawing 0-0 at home against Leeds United in what was a league-high fourth goalless stalemate for the Magpies this season.

Elsewhere, Southampton captain James Ward-Prowse became the fifth player to score an own goal and a direct free-kick in a Premier League game and the first since Gareth Bale for Tottenham against Liverpool in November 2012. The Saints were beaten 2-1 at Fulham.

Manchester United edged out Wolves at Molineux, thanks to Marcus Rashford scoring the only goal of the game.

Guided by Opta data, Stats Perform takes a close look at some of the key statistics from the final Premier League games in 2022.

Brighton and Hove Albion 2-4 Arsenal: Saka's fast start sets the tone

Bukayo Saka put Mikel Arteta's men ahead after just 66 seconds, the earliest away goal for the Gunners in the Premier League since May 2013, when Theo Walcott netted after just 20 seconds against QPR.

Captain Martin Odegaard (seven goals, five assists in his last 13 Premier League games), Eddie Nketiah and Gabriel Martinelli struck to build on that early opener, before a late wobble saw Brighton threaten to make a game of it.

Arsenal are just the fifth side in English top-flight history to pick up 43 points or more from the first 16 games in a season (assuming three points for a win).

The others are Tottenham (46 pts in 1960-61), Chelsea (43 pts in 2005-06), Manchester City (46 pts in 2017-18) and Liverpool (46 pts in 2019-20). The connection between those sides is they each went on to be champions.

Brighton are struggling at home but have a bright prospect in Evan Ferguson, who at the age of 18 years and 73 days became the club's youngest Premier League goalscorer when he grabbed the Seagulls' second.

Newcastle United 0-0 Leeds United: Out of Toon, Howe's team draw a blank

Newcastle ended the year with an outstanding 2022 record at St James' Park, collecting 41 points from 18 games (W12 D5 L1), with only Liverpool (48) and Manchester City (44) accruing more points on home turf.

This result was a disappointment, but perhaps we should have seen it coming. Despite posting an expected goals (xG) total of 2.01, which confirms they had plenty of chances to take all three points, Newcastle have now not won their final league game in any of the last six calendar years (D5 L1) since beating Nottingham Forest 3-1 in the Championship in 2016.

Leeds, scrapping to stay out of trouble in the bottom half, are unbeaten in four consecutive away league games against Newcastle for the first time (W1 D3), and their haul of four points from their last three trips away from Elland Road matches their total from their previous seven road games (W1 D1 L5).

Manchester City 1-1 Everton: Gray day as Haaland strike is not enough

This looked like being a familiar story when Erling Haaland fired City ahead in the 24th minute, but Demarai Gray's fine second-half leveller rescued a point for lowly Everton.

The result means reigning champions City, who were stunned 2-1 on home soil by Brentford before the World Cup break, have gone consecutive home games without picking up a win for the first time since losing to Leeds and Chelsea in April-May 2021.

Everton avoided defeat after falling behind at the Etihad Stadium for the first time and collected their first league point at the ground since a 1-1 draw in August 2017.

Haaland's 21 Premier League goals so far this term is the highest number scored by any player in a campaign before the turn of the year, and only Harry Kane (26) has managed more in the competition in the calendar year.

Gray's sweet strike in the 64th minute was Everton's first shot of the game, and it gave the former Leicester City winger his first away league goal since he netted in August 2021 at Brighton.

Wolves 0-1 Manchester United: Rash won't go away

Rashford came off the bench to be the hero, having been relegated to a substitute role after sleeping in and turning up late for a team meeting.

That was a rare misstep from the England man, who is showing exemplary form for United just now. Rashford has scored in three consecutive games for United for the first time since November 2019.

Rashford's classy 76th-minute finish gave him a 100th goal involvement in the Premier League (65 goals, 35 assists), and a 12th goal as a substitute in the competition. Only Ole Gunnar Solskjaer (17) and Javier Hernandez (14) have netted more off the bench for United in the competition.

Former manager Solskjaer, meanwhile, is the only boss who has reached 10 Premier League wins in fewer matches than Erik ten Hag. It took Solskjaer 12 games, while Ten Hag has needed 16 to reach the total, with his team now up to fourth spot.

United's success gave them a third consecutive away win at Wolves for the first time, while it means they have not lost their last league game of the year since a shock 3-2 reverse to Blackburn Rovers in 2011, winning eight and drawing three of their year-ending fixtures since.

Pep Guardiola remains optimistic about Manchester City's performances despite Demarai Gray's stunning equaliser denting the champions' title hopes on New Year's Eve.

Gray picked out the top-right corner with Everton's first shot of the game after 64 minutes at the Etihad Stadium, cancelling out Erling Haaland's opener in a stop-start 1-1 draw.

Having lost to Brentford before the World Cup, City have now failed to win in back-to-back home league games for the first time since May 2021 and remain without a Premier League victory on December 31 (D4 L1).

While City's dropped points handed Arsenal the initiative in an intriguing battle at the top of the table, Guardiola saw no reason to criticise his team's performance.

"Great game. We've played really well in the last three games and it makes me feel optimistic," he told BBC Sport.

"Dropping points at home is always tough, but I'm always trying to make our game good, and we have continued to do it.

"I would say they had eight at the back. In that situation, it's about movement and attacking at the right moment. In general we did it. We didn't allow them transitions. 

"They made a fantastic goal and when that happens you say congratulations, but in general we did really well."

However, defender John Stones was less positive, bemoaning City's failure to find a second goal against a resilient Everton side.

"I don't really know what to say. I feel like we've lost two points," the former Toffees centre-back said. "That's football. 

"We controlled the game for the majority of the time and had a lot of chances, but we couldn't seem to get that goal.

"It's difficult to take after the game. We showed great character to keep fighting and pushing. It was a bit of a scrappy game.

"We conceded two shots all game, but it's overlooked because of that incredible goal. On reflection, we'll be more positive when we look back, I'm sure."

Demarai Gray's stunning equaliser dented Manchester City's Premier League title bid and eased the pressure on Frank Lampard as Everton claimed a 1-1 draw at the Etihad Stadium on Saturday.

Lampard's struggling team looked set for more misery when Erling Haaland continued his incredible goalscoring form in the first half, sweeping home to hand City the lead.

Everton failed to register a single shot until the 64th minute, but they only needed one chance as Gray whipped a brilliant effort into the top-right corner to cap a devastating break.

Pep Guardiola's men looked startled by Gray's intervention, as their failure to find a winner handed Arsenal the initiative in the title race on New Year's Eve.

Haaland went close early on when he hit the side-netting from a tight angle after rounding Jordan Pickford, but he was not to be denied 24 minutes in.

Jack Grealish's neat work down the left allowed Riyad Mahrez to square for Haaland, who finished beyond Pickford in a crowded penalty area to put City ahead.

Former Everton defender John Stones hit the post with a diving header as half-time approached, and City appeared destined to add to their lead as they pinned the Toffees back. 

However, the visitors silenced the Etihad with their first attempt of the game after the hour mark, with Gray breaking clear and recovering from a stumble to arc a terrific effort into the far corner from the left of the area.

Pickford denied Mahrez from close range as City threw players forward in desperation late on, but Everton stood firm through 11 minutes of stoppage time to claim a huge point towards their survival bid – much to the delight of Arsenal.

Pep Guardiola says he would not have signed his new deal at Manchester City if he felt the players were not showing enough "desire and hunger."

The former Barcelona head coach penned a two-year contract extension in November, keeping him at the Etihad Stadium until 2025.

Guardiola has lifted the Premier League four times, as well as five domestic cups, since arriving at the club in 2016, though the Champions League has so far eluded him with the Citizens, including a final defeat to Chelsea in 2021.

However, the signing of Erling Haaland has given Guardiola's side renewed vigour, with many feeling the Norway international could be the final piece of the puzzle as City bid to win European football's top prize for the first time.

Guardiola's new deal put an end to rumours his time at City may be coming to an end, with some suggesting he may seek new challenges or even take a sabbatical similar to the one he did after leaving Barcelona in 2012.

But Guardiola feels City's two displays since coming back from the World Cup break - a 3-2 EFL Cup win over Liverpool and a 3-1 league victory at Leeds United - have exemplified why he decided to stay on.

"It is the results [that matter]," Guardiola told reporters. "If we are tired of each other then I will not finish this contract. The contract is just paper.

"If I extend, it's because I have the feeling that we can still play good, like the last two games. We did many good things [in those games] and still have the desire and hunger to do it.

"The moment I feel something is broken, I will resign or not extend."

City's players totalled 4,572 minutes on the pitch at the World Cup in Qatar, nearly 1,000 more than any other Premier League team.

Yet, City have picked up a pair of important victories since their return to action, and Guardiola is delighted with how his players have resumed the season.

"You have no idea how people are going to come back from the World Cup," he added. "They are in 25 degrees.

"And then you come here with this weather, immediately to Elland Road against the most intense team in the Premier League. But they reacted really well. The commitment made me feel that 'let's try to do it again.'

"If we don't do that against these opponents then it won't be possible. That is the challenge, to do it again. What I'm proud of the most is that we are still there."

Despite the victory over Leeds, City remain five points behind leaders Arsenal, who are looking to lift their first Premier League title since the 'Invincibles' did so in 2004.

But Guardiola is confident his team are capable of catching the Gunners, managed by his protege Mikel Arteta, adding: "Arsenal have done brilliantly and have been better than us so far. Their lead is not 15 or 20 points, we are close.

"Winning four in five years and seeing the way we played at Leeds, after the contenders all won, I see the desire."

Benfica's Enzo Fernandez starred for Argentina during their triumphant World Cup campaign, prompting speculation of a January transfer.

The 21-year-old was rewarded for his efforts by being named as the Young Player of the Tournament.

Fernandez only joined Benfica from River Plate last year, signing on a five-year deal that expires in 2027.

TOP STORY – CHELSEA TO CONVINCE BENFICA ON FERNANDEZ DEAL

World Cup sensation Enzo Fernandez has agreed to join Chelsea, with the Premier League club's next step to convince Benfica to sell him, claims the Metro.

Fabrizio Romano reports the Blues have opened discussions with the Portuguese club about a transfer, with talk the move could be worth £105million due to a release clause.

Benfica have shown little intention of selling Fernandez and Chelsea already have a back-up plan should the move not materialise in the shape of another Argentinian, Brighton and Hove Albion midfielder Alexis Mac Allister, according to the Times.

ROUND-UP

– ESPN claims Real Madrid are willing to splash out more than €100m to land Borussia Dortmund midfielder Jude Bellingham, who is also being chased by Liverpool .

– Barcelona and Newcastle United are interested in Chelsea midfielder Jorginho, but he wants to re-join Napoli when his Blues contract concludes at the end of this season, claims La Repubblica. Chelsea have also reportedly offered him a new deal.

– Manchester City have beaten Newcastle to the signature of Velez Sarsfield's 19-year-old midfielder Maximo Perrone, reports Team Talk.

– Gianluca di Marzio claims Milan are interested in a short-term move for Chelsea goalkeeper Edouard Mendy amid ongoing injury issues for number one Mike Maignan.

– The Daily Mail claims Wolves will let Mexican forward Raul Jimenez exit in January if they manage to land another striker.

– Unai Emery's Aston Villa are keen on Udinese forward Gerard Deulofeu, according to 90min.

Frank Lampard tried and failed to bring "amazing" striker Erling Haaland to Chelsea during his time as the Blues' manager.

Haaland has taken the Premier League by storm since signing for Manchester City from Borussia Dortmund in June.

The Norway international became the fastest player to score 20 Premier League goals with his double in City's 3-1 win over Leeds United on Wednesday, doing so in just 14 games, seven less than previous record-holder Kevin Phillips.

A home game against strugglers Everton, who lost 2-1 to Wolves thanks to a late Rayan Ait-Nouri goal on Boxing Day, should provide Haaland with an ideal opportunity to cap 2022 off on a high note.

Now manager of Everton, Lampard recalled trying to sign Haaland for Chelsea during his spell as their boss between 2019 and 2021.

Lampard told reporters: "He is an amazing player and the ultimate top-level players generally can do what he does in a top-level league.

"With a player of that talent, of course at any moment they can hurt you.

"I coached against him in a pre-season game when he was playing for Salzburg. I tried to sign him for Chelsea and it was not to be.

"It was clear in our pre-match preparation what this boy was. Fair play to him.

"We are going against him and I respect those at the top of their game. I watched the World Cup final with [Kylian] Mbappe and [Lionel] Messi, and Haaland has got himself in that bracket at a very young age."

Everton will be hoping to have their own number nine fit to feature at the Etihad Stadium on Saturday, with Lampard confirming Dominic Calvert-Lewin will be in his squad to take on the champions.

Calvert-Lewin's injury issues from last season have persisted, with the 25-year-old managing just six appearances this term.

"We've gone into a season where we've lost Richarlison and haven't really had Dominic, barring a few games," said Lampard, whose team have scored only 12 league goals this season, 31 fewer than City's tally of 43.

"We haven't had him, but not for the want of trying. It's injury. When you lose that firepower it might not be easy to replace in terms of pure goals and output.

"Having Dominic back in the fold is a great thing for us because players who can make the difference at the top end of the pitch like that mean points. It's as simple as that.

"We'll look and see what we can do in the January window to see what options we can have to start a game, change a game from the bench. We're looking at lots of players."

Bernardo Silva insists there is "no panic" at Manchester City despite Arsenal's five-point lead at the Premier League summit.

Mikel Arteta, who was previously Pep Guardiola's assistant coach at City, has guided the Gunners to 13 wins from 15 top-flight games this term, sparking dreams in the red half of north London of a first title win since the 2003-04 season.  

Reigning champions City have dropped points in four of their 15 games this season and Silva, who was an unused substitute in Wednesday's 3-1 win over Leeds United, knows there is little room for error as they aim to rein in the Gunners.

"It's the Premier League. You never know what is going to happen in this league. Newcastle United since the takeover have invested very well and look like they have a very good project," he said.

"Arsenal is not a surprise, maybe for some but not for me. I know the manager very well, I know how well he understands the game and how he deals with his players because when he was with us he did the same thing.

"It's a very young team but when you add players with a winning mentality like Gabby [Gabriel Jesus] and [Oleksandr] Zinchenko then it becomes a very dangerous side. I'm not surprised at all about Arsenal.

"We're behind and have to go after them knowing it's a difficult league. The league is still very much alive. We're not in a perfect position but we're better than most teams so we'll keep fighting.

"There’s no sense of panic but concern that we're five points behind – we're not happy. We know we can't make more mistakes. Arsenal can make mistakes and if they drop a few points they'll be a in a race with us and other teams.

"If we drop points, maybe Newcastle will go past us, [Manchester] United will go past us, Tottenham will go past us and Arsenal will keep running and it won't be easy to go after them.

"There's no panic but definitely motivation and a lot of focus to not let them go further away from us."

City are next in action on Saturday when Everton travel to the Etihad Stadium. 

Pep Guardiola has no doubt Pele would have dazzled in any era as he paid tribute to the late Brazil great – but Lionel Messi remains his choice for the greatest of all time.

Manchester City manager Guardiola said Pele's legacy "will be eternal", remembering how as a young boy he was told all about the Brazilian by a physio at Barcelona.

When Guardiola watched clips of Pele in his prime, he was wowed by the all-round ability of the Santos superstar, who won three World Cups with his country, in 1958, 1962 and 1970.

Pele toured the world with Santos, as teams lined up for the chance to play against him, and he resisted offers to play for European teams, including Real Madrid.

Following his death at the age of 82, announced by family on Thursday, tributes have poured in for Pele, and Guardiola offered condolences to loved ones from himself and City.

"Football is football thanks to these types of people, players and human beings," Guardiola said.

"What he has done for football is there and always will remain. He didn't just win three World Cups – it was a new thing when he came up. I was not born when he was playing, but it's like a good movie, no?

"The legacy after many years is still there. We are still talking all these years later. Pele, Maradona, Cruyff, Messi, Beckenbauer, Cristiano Ronaldo – these players will be forever, will be eternal.

"They have done many things for many years, and these types of players make our business, our work, our job a better place. What he produced; we have seen with the World Cup one team can change everything for a country of millions of people."

Guardiola added, in a tribute posted on City's website: "When I was in the academy at Barcelona I had a physio who was in love with Brazil and Pele. And after when I was nine or 10, I started to watch some clips.

"Now I realise he was so strong and could do everything. These type of players, if he was playing now, he would adapt to the rhythm and the pace. He was so intuitive and in skills and mentality, he could play in every generation."

Earlier in December, Guardiola said those preferring Pele or Diego Maradona above Messi did so for "sentimental" reasons.

He is sticking to his guns on rating 2022 World Cup winner Messi above all others, having coached the Argentinian at Barcelona.

"Everyone has their own greatest," said Guardiola. "For Argentina they might say Di Stefano, Maradona or Messi. I always say Messi is my favourite because I worked with him – but I understand people choose another one."

Manchester United are set to be busy in the January transfer window following Cristiano Ronaldo's exit in November.

Erik ten Hag's side are in the market to bolster their forward options, having already been linked to a host of players.

But United look set to settle for short-term loan deals with little money available for a transfer fee, limiting their options.

TOP STORY – MAN UTD INTERESTED IN EX-CHELSEA FLOP MORATA

Manchester United have turned their attention to signing Spain international forward Alvaro Morata on loan, according to ESPN.

United missed out on signing Cody Gakpo, who has joined Liverpool, while they face stiff competition to land Atletico Madrid forward Joao Felix along with a reported total package worth €22million for six months.

The report claims the Red Devils are hoping Atletico are willing to listen to loan offers, with the 30-year-old having been loaned to Juventus this season.

ROUND-UP

– Media Foot claims Manchester United and Tottenham have both commenced talks with Rennes on £34m-valued striker Martin Terrier.

– Chelsea are rapidly closing in on a deal for 21-year-old Monaco defender Benoit Badiashile, according to CBS' Ben Jacobs, with personal terms agreed.

– The Athletic reports that Chelsea have taken positive steps in talks with N'Golo Kante on re-committing to the club on a new deal. Kante's contract expires in June and he has been linked with several clubs in the January transfer window, including Barcelona .

– Manchester City will offer Milan forward Rafael Leao a contract worth €12m per season as they bid to lure him to England in January, claims TuttoMercatoWeb.

– Borussia Dortmund have joined the race to sign Juventus' United States international midfielder Weston McKennie, according to Tuttosport, with the German club viewing him as a suitable replacement for Jude Bellingham.

– PSG defender Sergio Ramos is being pursued by Saudi Arabian outfit Al Nassr, claims Marca. Al Nassr are trying to convince Cristiano Ronaldo to join the club, which is their priority move.

Tributes have poured in for three-time World Cup winner Pele following the Brazil legend's death aged 82.

The former Selecao star, widely considered one of the greatest to ever play the game, passed away on Thursday following a battle with colon cancer.

Pele's status as one of football's most recognised figures has drawn the sport together in mourning, with clubs across the globe honouring the late forward.

LaLiga and Champions League holders Real Madrid offered their condolences to the player's family, while paying tribute to the legacy he leaves behind.

"The legend of Pele will remain forever in the memory of all those who love this sport and his legacy makes him one of the great myths of world football," Los Blancos issued in a statement.

Fellow Spanish giants Barcelona said the Brazilian "made football greater than ever", while last season's Champions League finalists Liverpool called him an "icon" of football.

Several teams paid tribute to Pele with statements incorporating some of the game's other greats, such as Benfica, who posted a picture of him alongside late Portugal star Eusebio.

West Ham included former England captain Bobby Moore in their image after their famous battle at the 1970 World Cup, while Ajax featured Johan Cruyff, another of the game's great players, alongside the Brazilian.

Premier League trio Manchester United, Arsenal and Manchester City recalled their memories of Pele, with the Gunners reflecting on his visit for an encounter over four decades ago following his retirement.

Bundesliga giants Bayern Munich paid tribute to "one of the all-time greats" while Serie A champions Milan also offered condolences.

CONMEBOL, the South American Football Confederation, also issued a tribute to the late star, saying: "Thank you for putting South America on top."