Transfer news and football gossip: Chelsea identify two January targets, Man City ‘furious’ with Arsenal over Arteta, Leicester plot £25m bid

Manchester City are furious with Arsenal for their pursuit of Mikel Arteta and are now demanding a seven-figure sum if he is to become the Gunners’ new manager. The Spaniard held lengthy talks with Arsenal’s managing director Vinai Venkatesham in the early hours or Monday morning. Pep Guardiola has previously insisted Arteta will stay with City until the end of the season but his appointment is expected to confirmed this week. (Mirror)

Carlo Ancelotti has reached an agreement to become the next Everton manager. Toffees owner Farhad Moshiri sees three-time Champions League winner Ancelotti as a big name to underline his ambitions at Goodison Park. (Sky Sports)

Former Arsenal boss Unai Emery rejected an approach from Everton to replace Marco Silva because he thought it was too early to take another job in the Premier League. Emery was sacked last month after leading the Gunners to their worst start to a campaign in 37 years and Freddie Ljungberg was appointed as interim manager in his place. (Marca)

Ally McCoist tells Aston Villa to play weakened team in Carabao Cup quarter-final against Liverpool

Ashley Young is set to be released by Manchester United in the summer and is ready to talk to other clubs in January. The 34-year-old former England international has spent eight years at Old Trafford and made just under 200 Premier League appearances. (ESPN)

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Chelsea have identified RB Leipzig’s Timo Werner and Lyon’s French forward Moussa Dembele as January transfer targets as Frank Lampard steps up his search for a striker. The Blues boss is keen to provide Tammy Abraham with competition up front, as Olivier Giroud is expected to leave the club next month. (Mail)

Leicester are readying a £25m bid for Juventus and Turkey defender Merih Demiral during January’s transfer window. Despite only joining the Turin club in the summer, Demiral is struggling for game time as he is Matthijs de Ligt in Maurizio Sarri’s pecking order. The centre-back is open to a move to the Premier League and has also previously been linked with Arsenal and Tottenham. (Leicester Mercury)

A contingent of Tottenham’s senior players urged Jose Mourinho to sign Wolves winger Adama Traore after the 23-year-old dazzled against them on Sunday. Traore netted a 25-yard strike and caused problems for Spurs’ defence throughout the match.  (Football Insider)

Manchester City winger Leroy Sane is moving closer to a return to action having been spotted on the training pitch. The Germany international suffered a serious knee injury in City’s Community Shield match against Liverpool in pre-season. (Manchester Evening News)

Newcastle are hoping to sign Everton defenders Mason Holgate and Lewis Gibson, both of whom have been capped by England at youth level. Steve Bruce is looking to add reinforcements in central defence with captain Jamal Lascelles ruled out with injury. (Northern Echo)