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LIVE Transfer Talk: Real Madrid to offer Bayern's Alaba big contract

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Alaba: I wish internal affairs remained internal with Bayern (0:40)

David Alaba admits his frustrations with Bayern Munich over recent failed contract negotiations. (0:40)

The transfer window opens in early January, and speculation is heating up about potential deals. Check out the latest gossip below, and see all official deals here.

TOP STORY: Alaba to Madrid "could be imminent"

Real Madrid are preparing a four-year, €10 million-a-season contract offer for Bayern Munich's David Alaba, according to Marca's front-page story on Saturday.

"Alaba could be imminent" is the newspaper's headline, saying Madrid are "best placed" to sign the versatile defender and "want to close the deal as soon as possible."

The 28-year-old's Bayern contract expires on June 30 and he's now able to begin talks with other clubs about a free transfer this summer. Bayern had reportedly offered Alaba a five-year deal with an annual salary of around €11m, which could have gone up to €15m with bonuses, but withdrew that offer in November and broke off any further talks with the Austria international.

Sources told ESPN's James Olley last month that Chelsea and Paris Saint-Germain are also interested in signing Alaba as a free agent in the summer.

Alaba would be a high-level alternative to Raphael Varane and club captain Sergio Ramos at centre-back, with the latter also in negotiations with the club over a new contract with his current deal up in the summer, as well as a replacement for Marcelo on the left.

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20.53 GMT: Manchester United have no plans to loan winger Amad Diallo to Atalanta for the rest of the season despite the wishes of their manager.

Diallo, 18, is due to join United following a £37 million move on deadline day last year, but as part of the deal would remain at Atalanta until January which would give the club time to sort out the player's work permit.

Gian Piero Gasperini was keen to keep the player beyond January, but the United hierarchy want Diallo at Old Trafford this season and will not loan the winger back beyond January.

"Amad, we have had the paperwork," Manchester United manager Ole Gunnar Solskjaer said following United's win over Aston Villa on New Year's Day.

"We are waiting for other paperworks. I can't see any obstacles, really, so hopefully he'll be with us in not too long."

20.24 GMT: Sheffield United manager Chris Wilder has said that new players would help the club in their fight against relegation.

Speaking to Sky Sports after his side's 2-0 loss to Crystal Palace, Wilder spoke after being asked if the club had any plans to bring in any new faces during the January transfer window.

"Well of course it would make a difference because we would bring a couple of better players in to a team that's obviously struggling as you said," Wilder said.

"So quite frankly, as you've quite frankly said, it would make a difference."

Sheffield United are rock bottom of the Premier League with the club still yet to taste victory in the division this season.

19.41 GMT: Manchester City are reported to be preparing an audacious bid at the end of the season for Tottenham Hotspur forward Harry Kane, according to German outlet BILD.

City are said to be preparing a £90 million bid for the England international in the hopes it can lure him to the Etihad.

Kane, 27, has over three years remaining on his deal at Tottenham after penning a six-year deal in 2018 which keeps him in north London until 2024.

The Tottenham forward is yet to lift silverware with the club, meanwhile Pep Guardiola has lifted the Premier League on two separate occasions, the FA Cup and the EFL cup three times.

Guardiola sees Kane as the long-term successor to Sergio Aguero, who is in the last six months of his contract at the club.

- Messi, Alaba, Ozil, Aguero among the top free agents in 2021

19.03 GMT: USMNT defender DeAndre Yedlin still has a future at Newcastle insists manager Steve Bruce, according to the Chronicle.

Yedlin, 27, was rumoured to be seeking an exit in January with Turkish side Trabzonspor interested in signing the player. Clubs from Germany and the United States also expressed interest Yedlin during the festive period.

But Bruce seems to have had a change of heart regarding Yedlin's future, and now sees him as part of his plans for 2021.

"I have been absolutely delighted because he has come in from the cold after the problems that Javier Manquillo has had," Bruce said.

"If you train well and work hard then the opportunity comes your way you can grasp it.

"He's given us a glimpse of what he can do, and I am delighted for him."

Yedlin joined Newcastle from Tottenham in 2016 following a move from MLS side Seattle Sounders.

18.28 GMT: After injuries to Virgil Van Dijk and a number of other defenders Liverpool could enter the January transfer market, but who should Jurgen Klopp's side target?

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Nicol: Pogba's gotten better and better during Man United's run

Steve Nicol believes Paul Pogba showed that he is findind his form again in Man United's win vs. Aston Villa.

17.51 GMT: Arsenal defender Rob Holding is close to agreeing a new long-term deal with the club amid rumours of a January exit according to the Telegraph.

Holding, 25, has over a year remaining on contract in north London, but will a pen a new deal in order to secure his long-term future with the club.

The former Bolton and Bury player has impressed this season under Mikel Arteta earning 13 appearances in the Premier League including in Arsenal's first win at Old Trafford in 14 years.

The defender was of interest to Newcastle in the summer, but Arsenal blocked a move to St.James' Park in August.

Holding appears to have survived Arteta's January clearout with Sead Kolasinac loaned out to Schalke 04, while defender William Saliba among a number of players who look likely to exit the Emirates this window.

- Arsenal need a Bruno Fernandes signing in January, but who could it be?

17.00 GMT: Juventus attacker Paulo Dybala could be set to leave the club in 2021, but should he leave the club during the the January transfer window?

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Marcotti: Liverpool definitely looking for a defender in January

Gab Marcotti outlines Jurgen Klopp and Liverpool's options for adding defensive help during the January window.

16.23 GMT: Real Madrid manager Zinedine Zidane has ended speculation that Luka Modric, Sergio Ramos and Lucas Vazquez could leave the club in the summer.

The three Real players are all in the final six months of their contracts, but Zidane is keen to extend their stay in Madrid and hand all three new deals.

"Yes, we all want [contracts to be signed]," Zidane said in a news conference. "We want the situation to be sorted as quickly as possible. It is in everyone's interests, it would be good for everyone, so hopefully it can be sorted out quickly."

Ramos was linked with a move to Paris Saint-Germain, Tottenham were keen to bring Modric back to north London and Vazquez was rumoured to be a target for Manchester United according to La Defensa.

Real are second in La Liga, behind city rivals Atletico Madrid who top La Liga by two points with two games in hand over Zidane's side.

15.45 GMT: Speculation over the future of Crystal Palace forward Wilfried Zaha does not faze manager Roy Hodgson, reports the Daily Mail.

Zaha, 28, has been Palace's standout performer across the last few seasons since he rejoined the club from Manchester United in 2014.

"There has been so much speculation regarding Wilf over the years that I tend to let those concerns disappear, as they often do," Hodgson said.

"Wilf is good and it does not surprise me that there is clubs out there who would like to sign him, but a lot of things have to be put in place before a player leaves a club.

"I'm just happy at the moment that Wilf is playing as he is, displaying his discipline and concentration and his passion for football and the club, and unless I'm given a reason to think otherwise, I expect that to keep going."

Serie A leaders AC Milan as well as Paris Saint-Germain are both said to interested in the Ivory Coast international who has scored eight goals in 14 games in the Premier League this season.

- First Man United, then Arsenal: Zaha's form could attract interest from the big clubs again

15.13 GMT: Paris Saint-Germain have confirmed the appointment of Mauricio Pochettinho as their new manager the club announced on Saturday.

Pochettinho replaces Thomas Tuchel who was sacked by the club in December.

But does Pochettinho's arrival increase the chances of wantaway Barcelona star Lionel Messi joining PSG?

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Juve will 'push Dybala out the door' for the right price

Gab Marcotti believes this January transfer window is the best time for Juventus to move Paulo Dybala.

15.04 GMT: Chelsea could yet complete business in the January transfer window despite spending over £200 million last summer, according to the Evening Standard.

In recent weeks the west London based side have been linked with moves for Bayern Munich defender David Alaba as well as a handful of other players, but Chelsea will have to let players leave before bringing in any new faces.

"I am not sure at the moment. I have ideas, we have a big squad. We have to see if that changes if there are opportunities for players that aren't playing so much," manager Frank Lampard said in a news conference.

Chelsea have overgone a major squad overhaul with the club investing big figures to sign the likes of Timo Werner and Ben Chilwell.

This January could see outcasts Marcos Alonso, Antonio Rudiger, Kepa Arrizabalaga, Emerson and Fikayo Tomori seek exits from the club due to a lack of gametime.

Bayern are also said to be keeping an eye on winger Callum Hudson-Odoi who remains a target for the Champions League holders despite Chelsea rebuffing their advances for the youngster.

14.35 GMT: Former Tottenham boss Mauricio Pochettino has been spotted at Paris Saint-Germain's training ground ahead of a potential appointment with the French club.

Pochettinho, who was sacked by Spurs in November 2019, was pictured entering Camp des Loges earlier on Saturday as PSG seek a replacement for Thomas Tuchel.

The club confirmed last month that Tuchel's contract had been terminated late in December following poor league form which left the club third in Ligue 1, PSG are third in the table behind both Lyon and Lille.

Sources told ESPN in December that PSG have been in negotiations with Pochettino for over two weeks after club president Al-Khelaifi and sporting director Leonardo expressed concerns about the team's playing style.

14.14 GMT: Barcelona coach Ronald Koeman is unsuprised by the uncertainly surrounding Lionel Messi's future at the Camp Nou reports ESPN's Sam Marsden.

Messi, 33, is free to negotiate with clubs outside of Spain as he enters the final six months of his contract at Barcelona. French side Paris Saint-Germain are reported to be interested in the player with the club keen to reunite Neymar with his former teammate.

"He said he doesn't want to make a decision yet and we have to respect that," Koeman said in a news conference.

"Like any player whose contract is expiring, he is free to decide as he chooses. I don't see any problem if he doesn't make a decision now. We must respect his decision and what he said in the interview. It doesn't generate any nerves or worries."

The Argentina international is keen to leave the club following disputes with the club's hierarchy and Barcelona not granting him his wish to leave last summer.

13.57 GMT: Atalanta manager Gian Piero Gasperini has said he hopes Manchester United attacker Amad Diallo remains until the end of the season.

Diallo agreed a move from Atalanta to United in the summer transfer window and, after the paperwork was agreed, is due to officially move to Old Trafford this month.

However, though to the Champions League quarterfinals and with a battle on their hands to qualify once again this campaign, is hoping to keep hold of Diallo a little longer.

"Obviously he's a Manchester United player but he could still stay here for a few more months," Gasperini said ahead of Atalanta's clash with Sassuolo. "I like him a lot. He's only 18. I'd love him to stay until June but obviously that depends on his club."

13.31 GMT: Atletico Madrid Diego Simeone has confirmed that the club are considering bringing in a striker this month to replace Diego Costa.

Costa's contract was rescinded earlier this week, with Atletico saying the 32-year-old had "asked to leave the club for personal reasons."

Premier League club Wolves have been linked with interest in signing Costa, while Napoli's Arkadiusz Milik has been named in reports as a possible replacement for him at Atletico (see Paper Talk section below).

Simeone said in a news conference on Saturday: "We're always talking to the club, depending on what the team needs, and we're evaluating whether we'll bring someone in or not. The sporting department are working, depending on whether someone can come in, or if it's not necessary."

Simeone also wouldn't reveal whether a right-back is also on Atletico's agenda, with Kieran Trippier banned from football for 10 weeks for breaking English Football Association betting rules.

"I'll repeat my earlier answer, we're always looking and working on what's best for the team and consequently the club," he said. "If something has to happen, you'll hear about it."

12.33 GMT: Gianluigi Donnarumma is one of the most coveted young goalkeepers in world football. Will AC Milan be able to keep hold of him?

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Why Donnarumma still hasn't signed a new deal with Milan

With six months left on Gianluigi Donnarumma's contract at Milan, Gab Marcotti examines where talks stand.

11.42 GMT: Joan Laporta is leading Victor Font in the race to become the next Barcelona president, according to one poll, in an election that is likely to be pivotal in Lionel Messi's decision over his future at the club.

In a poll carried out among club members by Catalan newspaper Mundo Deportivo and the consultancy Time Consultants, 52.3% stated their intention to vote for Laporta.

Laporta, who was Barca president between 2003 and 2010, told ESPN last month he has an advantage over the other candidates because he has Messi's trust. Messi is into the final six months of his deal and free to negotiate a pre-contract agreement with other clubs but Laporta is convinced he will be able to get him to stay if he's elected.

"I don't see him playing for any other club," he told ESPN's Moises Llorens. "I see him in the Barca shirt -- and I have an advantage: Messi's trust. He knows the offer I make will be real and I will fulfill it. I think that will help a lot and is an advantage over the other candidates."

Font, who pledged last week to bring in Xavi Hernandez as general manager and Jordi Cruyff as sporting director, ranked second to Laporta with 13.2% of the vote. None of the other seven candidates received more than 4%, with Emili Rousaud, who has alluded to the prospect of signing Erling Haaland if elected, third with 3.2%.

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Lowe: Messi postponing future decisions till end of the season

Sid Lowe gives his thoughts on Lionel Messi's latest comments concerning his future with Barcelona

10.49 GMT: Tottenham Hotspur will not sanction any approach from Paris Saint-Germain for midfielder Dele Alli or goalkeeper Hugo Lloris this month, the Daily Mail reports.

Former Spurs boss Mauricio Pochettino is set to be confirmed PSG's new head coach as Thomas Tuchel's replacement, leading to speculation that the Argentine will raid his old club for their star players.

Alli has been linked with a move to the Ligue 1 champions since the summer as he has become a peripheral figure under Jose Mourinho. France's 2018 World Cup-winning captain Lloris, meanwhile, has also been mentioned in connection with a move to the French capital.

However, the Mail reports that Spurs have no intention of allowing either of the pair to leave.

- Top January transfer targets: Alaba, Eriksen, Alli and more

09.57 GMT: Liverpool have altered their position on Xherdan Shaqiri's future and will not look to move him out of the club this month, according to the Liverpool Echo.

Shaqiri, 29, is yet to start a Premier League game this season, and there had been talk that the Switzerland international would leave Anfield during the January transfer window either on loan or permanently.

However, with fellow forward Diogo Jota out injured, the Echo reports that manager Jurgen Klopp wants to keep Shaqiri in the squad until the end of the season.

09.00 GMT: Arsenal manager Mikel Arteta is resigned to having Mesut Ozil in his squad until June despite no indication that the midfielder will play again for the club.

Ozil, 32, has not played for Arsenal since March, since when he has been frozen out of the squad.

The 2014 World Cup winner is the club's highest earner on £350,000 a week, but Arteta is unsure he will call upon Ozil again.

"What you can do is try to be open with them and tell them your intentions," he said. "Some would like to move because they are not playing, and some would like to stay. That is something we cannot decide. They are entitled to make the decision because they have a contract."

PAPER TALK (by Nick Judd)

Nuno wants striker with Costa a priority

Wolverhampton Wanderers boss Nuno Espirito Santo has confirmed he plans to prioritise a striker in January, with the Daily Mail reporting that free agent Diego Costa tops his wanted list.

Raul Jimenez is out for the foreseeable after he fractured his skull in November, and Santo needs attacking reinforcements and states that the club "are ready to make decisions."

Wolves have been linked with Costa after he was released by Atletico Madrid this week, and so a move could provide the perfect fit for both parties.

Wolves currently sit in 12th place in the Premier League after an uncharacteristicly inconsistent start to the season.

Costa scored two goals in seven appearances for Atletico this season before parting ways with the club.

Madrid target left-back Mendes

Real Madrid have identified young Sporting Lisbon left-back Nuno Mendes as their preferred replacement for Marcelo, reports AS.

Madrid see the teenager as a long-term replacement for the 32-year-old Brazilian, and AS believes they have been scouting Mendes for the past few weeks.

Marcelo is out of contract in 2022, but many believe this could be his last campaign at the Bernabeu.

Mendes has impressed this season with a combination of pace, work rate and an ability to beat opponents, and he has played 13 of 15 games.

Sporting have already extended the youngster's contract to 2025 in the knowledge that some of Europe's top clubs are watching him, but he has a release clause of €25 million.

Madrid boss Zinedine Zidane faces pressure from Liverpool, Juventus, Paris Saint-Germain and Manchester United, who are also keeping tabs on the talented youngster.

Marseille in bid to land Milik

Napoli striker Arkadiusz Milik has been linked with a number of clubs in the past 12 months, but it appears that French side Marseille are the latest to bid for his services, according to Gazzetta dello Sport.

The Italian title suggests that Marseille boss Andre Villas-Boas is the manager most likely to tempt Milik away from Naples this January.

Fiorentina offered Napoli around €25m in October, but Napoli are now prepared to accept a lower offer given that Milik can leave the club for free from Feb. 1.

Milik could leave for as a little as €10-12m, which is less than the club was asking for before Christmas.

The Poland striker is also being considered by Atletico Madrid, who are looking for a replacement for the aforementioned Costa.

Tap-ins

- Brighton & Hove Albion are considering a move for Manchester United goalkeeper Sergio Romero as a replacement for Mat Ryan, who has been told he can leave the Amex Stadium. Romero has slipped down the pecking order at Old Trafford following the return of Dean Henderson from Sheffield United, and the Daily Mail believes the Seagulls are keen to land the Argentine in January. Romero has also been linked with an unnamed Spanish side, as well as a move to MLS club Inter Miami.

- Eintracht Frankfurt are urgently looking for a replacement for Bas Dost, and Bild reports they're keen to land Bayern Munich youngster Joshua Zirkzee. Contact has already been made, and Frankfurt are keen to sign a young player they can sell for big money, just as they did with Sebastien Haller and Kula Jovic. However, Zirkzee is under contract until 2023 and Bayern are reluctant to sell, preferring instead to loan him out. Cologne are also interested.