Arsenal and Tottenham Hotspur are circling after contract talks between Jadon Sancho and Manchester City broke down, throwing his future into doubt.

Sancho was dropped from the City squad that flew out to the United States for their pre-season tour on Monday despite initially being pencilled in to feature for Pep Guardiola’s side because he has still not signed his new City deal.

17-year-old Sancho is rated as one of the brightest talents in the club’s academy and inspired City to reach the FA Youth Cup final this season.

City are desperate to keep Sancho and have offered him a three year deal starting at roughly £30,000 per week, one of the most lucrative deals ever given to a 17-year-old player in England.

But Sancho still has not signed, believing that the path to the first-team is blocked at City and that he could play first-team football sooner elsewhere.

Arsenal and Tottenham both have a long-standing interest in Sancho and want to take advantage of his desire to move back to London.

Spurs had hoped to include him in the deal that took Kyle Walker to the Etihad Stadium but were rebuffed.

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Sancho currently has one season left on his scholarship deal at City. If Sancho were to leave this summer then City would be due between £3m and £4m in compensation.