Real Madrid are reportedly close to agreeing a deal with David Alaba, while Manchester United are expecting the asking price for Jadon Sancho to drop.

Alaba, 28, is set to leave Bayern Munich with his contract expiring at the end of the season.

The defender is free to speak to other clubs, and Madrid are making their move.

TOP STORY – MADRID CLOSE TO ALABA SIGNING

Real Madrid are close to landing Bayern Munich defender Alaba on a four-year deal, according to Marca.

Alaba is likely to have offers from multiple clubs after establishing himself as one of Europe's leading defenders.

The Austria international has won nine Bundesliga titles and two Champions Leagues among numerous other trophies with Bayern.

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- With Jadon Sancho yet to hit top form for Borussia Dortmund this season, Manchester United may be able to land the attacker later this year. 90min reports United believe they can land Sancho for less than £100million (€112.7m) after not meeting Dortmund's valuation of £107m (€120m) in the close season.

- Lionel Messi's future remains a major talking point. Sport reports the Barcelona star – who is out of contract at the end of the campaign – will wait until the end of the season to decide between the LaLiga giants, Manchester City, Paris Saint-Germain and MLS.

- Real Madrid are apparently eyeing a replacement for Marcelo. AS reports the LaLiga giants are tracking Sporting CP left-back Nuno Mendes, who is also linked to Liverpool, Manchester United, Juventus and PSG.

- Liverpool are also linked with centre-backs after long-term injuries to Virgil van Dijk and Joe Gomez, while potential exits have been mentioned. However, the Liverpool Echo reports the Premier League giants are not expecting any senior departures in January, which would mean Xherdan Shaqiri and Divock Origi remain despite speculation over their futures.

Manchester City are reportedly planning a bid for Harry Kane, while United are still interested in Jack Grealish.

City have been linked with numerous forwards amid uncertainty over Sergio Aguero's future.

And it seems the Tottenham star is among their targets.

TOP STORY – MAN CITY PLANNING £88.7M BID FOR KANE

Manchester City are planning an £88.7million offer for Tottenham star Kane ahead of next season, according to Bild.

Kane, 27, is contracted at Spurs, where he continues to star, until 2024.

The England international has scored nine goals in 15 Premier League games this season.

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- Manchester United remain interested in signing Aston Villa star Grealish, according to the Daily Mail. The midfielder was heavily linked with a move to United in the close season, but ended up staying at Villa, who are in action at Old Trafford on Friday.

- Eric Garcia has seemingly made a decision on his future. The Guardian reports the Manchester City defender has agreed personal terms on a five-year deal with Barcelona. Garcia is contracted at City until the end of the season.

- With Mauricio Pochettino reportedly set to take over at Paris Saint-Germain, Tottenham apparently have worries over Hugo Lloris. The Sun reports Spurs fear the goalkeeper could join former boss Pochettino in Paris and they are eyeing West Brom's Sam Johnstone and Manchester United's Dean Henderson as potential targets.

- Yet to play for Arsenal this season, Mesut Ozil's future remains a talking point. Bild reports the playmaker wants to see out his contract, which runs until season's end, with the Premier League outfit.

- Also coming out of contract, Sami Khedira looks set for a Juventus exit. The Daily Mail reports the midfielder is set to hold talks with Everton over a potential move.

- Struggling for game time at Manchester United, Jesse Lingard has had the one-year option on his contract at the club triggered, according to Sky Sports. Lingard's deal now runs until 2022.