New contract talks between Wigan Athletic and midfielder James McCarthy have broken down.

The Daily Mail says Arsenal, Liverpool and Chelsea are all monitoring the situation.

The 20-year-old is rated at £15million by Wigan but, after two rounds of talks, both parties seem no nearer a deal.

Wigan would be loath to lose the midfielder following Charles N'Zogbia's sale and increased interest in Hugo Rodallega.

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