Real Madrid face losing top scorer Gonzalo Higuain at the end of the season. The Argentina international has seen new contract talks suspended until the end of the season, while GM Jorge Valdano insists they want him to stay.

However, Sport says Real insist they will not meet Higuain's demands of parity with Karim Benzema's €8.5 million-a-year wages.

Manchester City are ready to pounce for the prolific striker.