The proposed sale of Olivier Giroud from Arsenal to Borussia Dortmund looks to be off as talks hit an impasse.

Borussia Dortmund wanted the France international to replace Pierre-Emerick Aubameyang but, despite an initial acceptance for the deal to progress, the Germans have been unimpressed with offers so far and Giroud is assessing other options.

Arsenal have increased their initial offer but it is still short of Dortmund's desired price for Aubameyang and has not been well received by the Bundesliga side.

Borussia Dortmund are ready to look at alternative options to Arsenal striker Olivier Giroud

Dortmund may revert to asking Chelsea for their struggling Belgian striker Michy Batshuayi

Aubameyang is insistent on the move which is an advantage for Arsenal but there is a general acceptance that they will need to increase their bid to around £56million.

Dortmund may then revert to asking Chelsea for Michy Batshuayi rather than revive interest in Giroud. However, that will hinge on Chelsea signing Edin Dzeko or an alternative.

West Ham striker Diafra Sakho is discussing a potential move to French side Rennes.

The 28-year-old had been close to joining them before but saw a move fall through in the summer while a proposal earlier this month fell short of West Ham's valuation.

Rennes are now proposing a loan with a view to making the deal permanent should Sakho score seven goals.

Talks are centring on a potential £10million fee.

Crystal Palace, Swansea, Newcastle, West Brom and Bordeaux have all enquired for Sakho this month.

West Ham's new signing Joao Mario will fly to London ahead of his medical. The Portugual international is joining on loan for the rest of the season.

Manager David Moyes is looking to add another striker with Marko Arnautovic likely to be out for two weeks and midfielder Mario Lanzini out for up to six.

West Ham have a number of midfield and defensive options but, as Sportsmail reported on Monday, Moyes considers a move for Real Betis midfield prospect Fabian Ruiz to be too early in the career for the 21-year-old despite his undoubted talent.

West Ham striker Diafra Sakho is discussing a potential £10m move to Ligue 1 side Rennes

Liverpool have beaten off late competition from Manchester United to sign Falkirk teenager Tony Gallacher.

The left-back, once coveted by Barcelona, is due to sign for Liverpool on Friday in a deal that could potentially rise to £1.2million.

Gallacher has been followed by Liverpool for over a year while Swansea City had been considered frontrunners for his signature prior to Christmas.

However, Liverpool invited him down for training last week and he impressed staff suitably for an offer to go in.

Manchester United though, had also followed Gallacher and, on finding out about Liverpool's move, made enquiries to sign the former Scotland U17 international themselves last week.

The 18-year-old travelled back to Scotland last weekend to hear of the rival interest but was set on a move to Liverpool.

Gallacher is expected to finalise terms on Friday.

Tony Gallacher has made 26 first-team appearances for Falkirk since making his debut at 16

Meanwhile, Red Bull Leipzig are primed to beat Manchester United to the signing of Umaro Embalo in a deal worth up to £12million.

The 16-year-old was wanted by United but they believe the price for Embalo is too high.

Chelsea have put a recall option in their loan deal for left-back Baba Rahman.

The Ghana is on his way for a medical at Schalke ahead of confirming his 18 month loan.

The 23-year-old, who has recovered from a knee ligament injury, was also a target for Everton and Inter Milan in recent weeks plus Monaco. His arrival precedes Chelsea's move for Emerson Palmieri with the Roma left-back expected to sign regardless of whether they can agree terms for his teammate Edin Dzeko.

The Bosnia international is understood to be looking for substantial wages and a longer contract than the one initially proposed.

Roma have been linked with a move for Erik Lamela at Tottenham, meanwhile, but that deal is considered unlikely.

Baba Rahman (right) will join Schalke on loan but Chelsea retain the right to recall him

Crystal Palace have had an offer rejected for Lille defender Ibrahim Amadou. Lille want £18m for the 24-year-old but Palace have been trying to arrange an initial loan with a view to a permanent deal.

Lille are also braced for further interest from Everton for defender Adama Soumaoro while Manchester City continue to discuss 18-year-old midfielder Boubakary Soumare.

Crystal Palace are pressing ahead in their bid to sign £16m-rated Lille star Ibrahim Amadou

Everton are ready to allow Ademola Lookman to go out on loan. A number of Premier League sides have shown interest in the talented 20-year-old who is likely to slip down the pecking order following the arrival of Theo Walcott.

Derby County made enquiries in the summer for Lookman who cost Everton £11m from Charlton.

Everton striker Sandro has interest from Newcastle, Sevilla and Malaga while Davy Klaassen is an option for Fenerbahce.

Everton are ready to allow Ademola Lookman to go out on loan after Theo Walcott's arrival

Brighton are discussing moves for Real Betis midfielder Victor Camarasa and Ezri Konsa from Charlton Athletic.

The 23-year-old Camarasa impressed on loan at Alaves from Levante last season and Betis moved to sign him in the summer for for £6million.

He has started just 11 of their 20 league games but Brighton were on his trail last summer and have revived their interest as they look to put in a bid of around £8million.

Manager Chris Hughton is keen to add a couple more players to his squad as they begin to slip back into the relegation zone.

Highly-rated Konsa has been the subject of interest from Liverpool and Everton but both have been put off by the League One club's £5million asking price. The 20-year-old centre-back has been with Charlton since he was 12 and has been capped by England at U20 level.

Brighton have had an £8million bid rejected for Newcastle striker Aleksandar Mitrovic and were rebuffed in an attempt to sign Bristol City defender Aden Fint for £6million.

Brighton have also asked about Wigan Athletic midfielder Nick Powell.

Highly-rated Ezri Konsa has been the subject of interest from Liverpool, Everton and Brighton

Bournemouth are weighing up a bid for Dundee defender Jack Hendry after watching him against Hibernian on Wednesday.

West Ham also watched the 22-year-old who was unable to prevent his side losing 1-0.

Celtic have already had a £500,000 bid rejected for Hendry and Dundee's price is rising as clubs latch on to the promise of the young centre-back.