Manchester City are reportedly preparing to submit their opening bid for West Ham United midfielder Declan Rice on Thursday.
The England international is set to end his 10-year association with the Europa Conference League winners this summer before a possible exit on a free transfer in 2024.
West Ham have previously priced interested parties out of a move for their captain, but co-chairman David Sullivan has confirmed that he will be allowed to leave for the right price this summer.
For the past few months, Arsenal have been considered the favourites to sign Rice, who is believed to have informed West Ham that the Emirates Stadium is his ideal destination for a transfer.
Rice would be able to fulfil his Champions League dreams in North London, but Arsenal have so far been reluctant to meet West Ham's asking price and have seen two offers rejected.
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The Gunners' latest bid was believed to be in the region of £90m, with an upfront fee of £75m and £15m in add-ons, but West Ham want as much as £100m and potentially up to £120m to sanction a sale.
West Ham's asking price is not the only challenge that Arsenal are now facing, as The Athletic claims that Man City are poised to approach the Hammers with their opening proposal in the coming hours.
The Premier League and European champions have been keeping tabs on Rice's future amid uncertainty over Ilkay Gundogan's situation, and the Germany international is now believed to be on the verge of joining Barcelona when his Etihad deal expires at the end of the month.
Chelsea midfielder Mateo Kovacic is expected to arrive in a £30m deal to reinforce Pep Guardiola's midfield, but a big-money move for Rice is also a serious possibility.
However, Arsenal are still optimistic that they will win the race for the former Chelsea product, and the Gunners are expected to table a third bid in the hope of edging closer to an agreeable fee.
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Rice departed Chelsea's academy in 2013 to sign for the Hammers, and the Blues have unsurprisingly been tipped to bring the midfielder back to Stamford Bridge, but they are not thought to be actively pursuing a move while they focus on outgoings.
Meanwhile, Manchester United are prioritising the signing of a new striker or new goalkeeper before turning their attention to midfield targets, and the slow-moving takeover process is also hindering their chances of success in the transfer market.
Rice has now represented West Ham on 245 occasions since breaking into the first-team squad, scoring 15 goals and setting up 13 more from the centre of the park.
The Hammers skipper came up with five goals and four assists from 50 matches last term, steering David Moyes's men to Europa Conference League glory and Premier League survival.
While Arsenal have suffered a setback in their pursuit of Rice, the Gunners are understood to have agreed a deal in principle to sign Chelsea's Kai Havertz, who could be utilised in a midfield role by Mikel Arteta.
Ben Knapton
