The Daily Mail says the emailed offer was confirmed by sources in Barcelona last night and it followed a weekend of intense speculation that a deal with AC Milan had been agreed for the Brazil star.

City have even promised Ronaldinho, 28, the No 10 shirt, which fits in with his R10 range with major sponsors, Nike, who would foot some of the bill for bringing him to the Barclays Premier League.

Reports from Milan claimed that a deal for Ronaldinho had been agreed with Barcelona amid suggestions that a salary of £5million-a-year had been offered. But that is at least £100,000-a-week less than City are prepared to pay.

That may explain why Spanish radio last night reported a fall-out between Milan's chief transfer negotiator Adriano Galliani and Ronaldinho's agent and brother, Roberto de Assis. While Milan hold the upper ground in the transfer negotiations - Ronaldinho would rather play for the Italians - they cannot match Thaksin Shinawatra's financial power.

City's pay-as-you-play salary offer is being supported by at least one major sponsor, with Nike prepared to back the deal. Deal insiders say that Milan must still remain favourites, but City are refusing to give up the chase.

"They are refusing to be bullied out if it by Milan," a source said last night. "You have to admire their daring and their audacity. They still have hope that this could be possible."