Manchester City and Chelsea are set to battle it out for the signature of West Ham United's attacking midfielder Dimitri Payet.

The Sun is reporting City are looking to make Payet the first signing of new manager Pep Guardiola when the transfer window reopens in the summer.

It is understood the Citizens are willing to fork out £30million for the French playmaker, but will face stiff competition from Chelsea who are also believed to be interested.

Chelsea reportedly see Payet as a suitable replacement for Eden Hazard, should the Belgian leave in the summer.

West Ham have opened talks with Payet and could be set to offer him a new five-year deal at Upton Park in an effort to ward off other suitors.