Manchester United have made a £25m bid to sign Arsenal’s 28-year-old Chile forward Alexis Sanchez. (Guardian)

Sanchez would prefer to join Manchester City, but Pep Guardiola’s side have only bid £20m. (Independent)

Manchester United have also made initial inquiries about two other forwards – Leicester’s 30-year-old England international Jamie Vardy and West Ham’s 29-year-old Mexican striker Javier Hernandez, who was at Old Trafford from 2010-2015. (Telegraph)

New MLS side Los Angeles FC are also interested in signing Hernandez. (Talksport)

Liverpool are in talks with Leicester and Algeria winger Riyad Mahrez, but the 26-year-old would prefer to sign for Arsenal. (Express)

Liverpool are willing to sell their 28-year-old striker Daniel Sturridge, but they will demand £30m for the England international. (Liverpool Echo)

However, no club in the Premier League is prepared to meet Sturridge’s valuation, and his £150,000-a-week wages are another obstacle. (Mail)

Carlo Ancelotti is the preferred candidate to take over from Arsene Wenger as Arsenal boss at the end of the season. The Italian former Chelsea, Real Madrid, Bayern Munich and Paris St-Germain manager has agreed a four-year deal worth 40 million euros (£35.5m). (Corriere dello Sport – in Italian)

Everton are set to make a £20m bid for Arsenal’s 28-year-old England forward Theo Walcott. (Telegraph)

Espanyol are not aware of any interest from Stoke City in their Spanish manager Quique Sanchez Flores. (Marca – in Spanish)

Crystal Palace are targeting two new strikers. They have agreed a £12m fee for West Ham’s 28-year-old Senegalese striker Diafra Sakho and will bid £13m for Everton’s 27-year-old Senegalese forward Oumar Niasse. (Evening Standard)

Manchester United will match Liverpool’s interest in 19-year-old United States and Borussia Dortmund midfielder Christian Pulisic if their Premier League rivals make a bid. (Independent)

United are considering making a bid for Shakhtar Donetsk’s Brazilian midfielder Fred, 24, who is also a target for Manchester City. (Record)

Everton are considering recalling their 21-year-old England U21 left-back Brendan Galloway from his loan at Sunderland. (Liverpool Echo)

Liverpool and Tottenham want to sign Norwich’s England U21 attacking midfielder James Maddison. (Mirror)

Wolves are also interested in signing the 21-year-old from their Championship rivals. (Express and Star)

Inter Milan have made a loan offer for Barcelona and Brazil midfielder Rafinha, 24, with an option to buy him for £17.7m. (Sky Sport Italia – in Italian)

Former Chelsea midfielder Ramires hopes to join Inter Milan this month. The 30-year-old Brazilian plays in China for Jiangsu Suning. (Sky Sport Italia)

Manchester City are set to send England U20 winger Isaac Buckley-Ricketts, 19, on loan to Oxford United after recalling him from FC Twente. (HITC)

Nottingham Forest’s new manager Aitor Karanka wants to sign Chelsea’s Belgianforward Charly Musonda, 21, on loan. (Telegraph)

Two Premier League clubs want to sign Changchun Yatai striker Odion Ighalo and the 28-year-old Nigerian former Watford player says he is open to a Premier League return. (Sky Sports)

Newcastle are set to open talks with 17-year-old Young Boys striker Yannick Toure, who plays for Switzerland Under-17s, in the next 24 hours. (Mail)

A second Middle East investor is looking to make an offer for Newcastle United. (Mail)

Best of Thursday’s gossip

West Ham are ready to listen to offers of £17m for Mexico striker Javier Hernandez, 29, and they could replace him with Krasnodar forward Fyodor Smolov. The 27-year-old Russia captain is said to be interested in a move to the club. (Mirror)

Manchester United would be willing to let Henrikh Mkhitaryan, 28, return to Borussia Dortmund this month if a deal can be agreed that suits all parties. The Armenian playmaker’s current wages are thought to be a potential stumbling block. (Independent)

Manchester United manager Jose Mourinho has asked Ajax striker Justin Kluivert, 18, to stay with the Dutch club this month as he hopes to bring him to England in the summer. (Sport – in Spanish)

Liverpool plan to offer Brazilian attacker Roberto Firmino, 26, a contract that would see him spend the rest of his career at the club. (Telegraph)

Gossip was compiled by Patrick Jennings and Emlyn Begley.