Chelsea and Manchester City are set to battle it out for AC Milan winger Rafael Leao during the January transfer window, according to TMW.

The Italian website claims that “offers” are “on the way” from both teams for the Portuguese international, with Milan now increasingly pessimistic about keeping the player at the San Siro.

It is believed that the Blues will offer a part-exchange deal for Leao worth around €120m (£105m), which could include Armando Broja and one of either Christian Pulisic or Hakim Ziyech.

In contrast, City are expected to make a cash only bid as they look to secure the services of a player they see as the perfect replacement for Raheem Sterling.

Leao will have just eighteen months left on his contract in the New Year and, if Milan can’t find an agreement to extend his current deal soon, a sale in January is looking increasingly likely.