Premiership clubs are on red alert after Daniel Alves rejected a new contract offer from Barcelona.

Manchester City and Chelsea are eyeing the Brazil international, regarded by many as the world's best right-back.

El Mundo Deportivo says Alves rejected Barca's proposed two-year contract extension, with the Brazilian's current deal due to expire in 2012.

It's understood Alves has had his head turned by City and Chelsea's interest, with both clubs willing to better what Barca are prepared to put on the table.