Chelsea and Manchester City have been encouraged by developments at Atletico Madrid involving Sergio Aguero.

Sport says Atletico chiefs are resigned to selling the Argentina striker at the end of the season after his agents indicated they're ready to demand a double-your-money contract for the youngster to stay.

Aguero is currently on £3.5 million-a-year and Atletico could not consider paying a £7 million salary to keep the young forward.

The Argie, whose contract carries a £40 million buyout clause, is a target for both City and Chelsea and is likely to quit Spain rather than move to a Liga rival when he does decide to leave Atletico.