Manchester City have pulled out of the race to sign West Ham midfielder Declan Rice after Arsenal submitted a third bid worth £105m.
City had a £90m offer rejected by West Ham on Tuesday after the Premier League champions bid £80m up front, plus £10m in add-ons for the England midfielder.
But Pep Guardiola’s side have decided to not match or surpass Arsenal’s £105m bid for Rice with the Gunners offering a £100m initial fee, plus £5m in performance-related add-ons.
But Sky Sports News has been told the Gunners will have to negotiate the structure of their record-breaking offer for the 24-year-old, with talks continuing on Wednesday.
It is thought West Ham want the guaranteed fee paid up in a shorter time frame but the total amount of £105m is not expected to be a problem.
The offer smashes Arsenal’s transfer record – the £72m they paid Lille for Nicolas Pepe in 2019.
Rice has been Arsenal’s primary target this summer and the player’s preferred destination is the Gunners.
More to follow…