Real Madrid believe they are in pole position to sign Kylian Mbappe in a world-record £161 million deal from Monaco.

Manchester City have also lodged their interest in Mbappe but expect the striker to move to Real if he does leave the French champions this summer.

City first enquired about Mbappe in April but balked at Monaco's then £130 million asking price and club sources insisted on Tuesday night that they had neither bid nor entered formal negotiations for the teenage sensation.

Alexis Sanchez has been Pep Guardiola's long-standing strike target and City remain likely to test Arsenal's resolve over the £50 million-rated Chile forward.