Manchester City face a transfer battle with Real Madrid for Santos midfielder Paulo Henrique Ganso.

City insisted on first refusals for Ganso and fellow Brazilian starlet Neymar when they agreed to let Robinho go there on loan in January.

However, Madrid are ready to move for Ganso as a long-term replacement for Guti, leaving Roberto Mancini with a tough decision as to whether they should take up their option.

"I am excited to learn of Real Madrid's interest in me, but I am not thinking about leaving Santos," he said after the 1-1 draw against Ceara at the weekend. "I hope to be able to continue with Santos and learn from every game."