Wigan Athletic winger Antonio Valencia has become the latest bone of contention between Manchester United and Real Madrid, with both clubs locked in a bidding war for the Ecuador international.

The Daily Mail report that Real's bid of £21.5m is still on the table while United are becoming increasing unhappy with the £16m offer they have made for the 23-year-old.

United's scouts have not been impressed with Valencia's end of season form and the Red Devils are not sure that £16m represents value for money. The Old Trafford outfit are banking on Valencia's unwillingness to uproot and move to Spain to seal a cut price deal.

However, the Daily Mirror claim that United are actually more than happy to pay £17million for the Wigan winger and chief executive David Gill will complete proceedings in the next few days. Any deal might also involve a player exchange but this has been complicated because manager Steve Bruce has left and Roberto Martinez is set to take over as boss. Just for the record, The Mirror claim Real's bid is only £18m.

Madrid are also very interested in taking Liverpool midfielder Xabi Alonso to the Bernabeu, according to The Times. But the Reds insists it would take a "mind-blowing offer" to persuade them to part company with the Spaniard.

New Real president Florentino Perez said: "Xabi is a magnificent Spanish player, so of course we'd love to have him." Liverpool have made it clear they have no intention of selling the 27-year-old, who has three years left on his contract.

Barcelona will make a last ditch attempt keep £25m Manchester City target Samuel Eto'o at the Camp Nou, according to The Sun. The striker's agent, Josep Maria Mesalles, has confirmed his client would head to the Premier League and Barca president Joan Laporta has admitted offers have come in for the 28-year-old.

Over at Everton manager David Moyes has set his sights a little lower and is weighing up a £7m offer for Reading duo Kevin Doyle and Stephen Hunt. The Daily Star report the Republic of Ireland internationals, who missed out on promotion back to the Premier League this season, are keen to move to Goodison Park.

The Daily Telegraph report that Arsenal manager Arsene Wenger has agreed a £10 million deal to sign Belgium defender Thomas Vermaelen from Ajax as Kolo Toure looks set to head to Manchester City. The defender said: "Moving to Arsenal is the right path for me."

And finally... England Under-21 boss Stuart Pearce will defy Wenger to ensure Theo Walcott plays in the European Championship, which starts next week, as well as for the senior side against Andorra on Wednesday, claim the Daily Express.