Manchester City boss Mark Hughes and Chelsea skipper John Terry were at the same holiday resort last week, it has been revealed.

The Sun says Terry and Hughes stayed in the same Dubai hotel complex last week.

Just days afterwards, Manchester City had a £30million bid for the Chelsea and England skipper rejected.

City, also interested in Carles Puyol of Barcelona, will continue to pursue Terry and are poised to up their offer to £35m.

Both City boss Hughes and centre-back Terry holidayed at the exclusive Jumeirah Beach complex. Each had a villa on the sea front.

City are very keen to land Terry.

Holidaymakers at Jumeirah Beach have told how they saw Hughes and Terry there the weekend before last.

Jason Dyer, from Hertfordshire, said: "We met John Terry in one of the restaurants and saw him around the hotel gardens. We also had breakfast at the next table to Mark Hughes.

"It was amazing to find when we came home City had made a bid for Terry."