Aston Villa remain in the hunt for Manchester City outcast Scott Sinclair.

The Daily Star Sunday says City are resigned to taking a financial hit on Sinclair, 25, who cost £6m from Swansea three years ago.

They are prepared to accept £2.5m for him, with Villa facing competition from Crystal Palace.

City could also show interest in a Villa player - midfielder Fabian Delph - a move which would increase their English quota.

Delph, 25, is out of contract at Villa Park at the end of the season and has been linked with moves to Liverpool, Arsenal and Tottenham.