Manchester City are interested in AC Milan striker Rafael Leao.

As Leao's new contract talks with Milan stumble on, the likes of Chelsea and Arsenal have expressed interest in the Portugal international.

And TMW says City have now entered the battle.

The Premier League champions are in talks with Leao's agents and are offering a contract worth €12m-a-year. Milan's ceiling, meanwhile, is set at €7m-a-year.

It's suggested City are prepared to include Jack Grealish in their offer to bring Milan to the table.