Real Madrid have offered in the region of £27m for Arsenal and Manchester United target Karim Benzema after switching their attention to the 21-year-old Lyon striker from Valencia forward David Villa.

Chelsea will make a new £50m offer for AC Milan’s Brazilian striker Pato after their initial £45m bid for the 19-year-old was rejected.

Chelsea striker Didier Drogba, midfielder Michael Essien and defender Ashley Cole are to be offered new £125,000-a-week deals, but Joe Cole and Jose Bosingwa could be on their way out of Stamford Bridge.

Liverpool winger Jermaine Pennant is agonising over a switch across Stanley Park to join Everton.

Aston Villa are ready to make a £5m swoop for German international Tim Borowski, 29, who plays in midfield for Bayern Munich.

Stoke are ready to smash their transfer record and spend £6m on Newcastle’s Nigerian striker Obafemi Martins. But they are likely to face competition from Everton, Aston Villa and Tottenham.

Barcelona misfit Eidur Gudjohnsen says a return to England is “probably inevitable” with West Ham believed to be leading the chase for the former Chelsea forward.

West Ham want to bring Anton Ferdinand back to Upton Park from Sunderland in a cut-price deal.

Sunderland will pitch in a £5m bid for Rangers midfielder Steven Davis.

Robin van Persie has rejected speculation linking him with a move away from Arsenal, insisting he wants to stay at the club.

Hull manager Phil Brown insists he will not rush in-demand Newcastle striker Michael Owen into a decision regarding his future.