Manchester United and Manchester City are battling for Palermo defender Simon Kjaer. The Daily Star says Roberto Mancini is ready to announce his arrival at Manchester City by going head to head with Sir Alex Ferguson in the race to sign Kjaer.

The Palermo central defender is high up on the Manchester United boss' January window wish list, while Liverpool are also monitoring his progress.

However, Mancini is planning to beat both to the 20-year-old's signature as he bids to solve the defensive problems which have blighted City's season.

Danish international Kjaer says he is happy at Palermo, having signed from FC Midtjylland last year.

But with an £11m get-out clause, it would present no problems for moneybags City to entice him to Eastlands.

Kjaer said last week: "Manchester United? I am happy here in Palermo and I want to help with the push for European football.

"I have three years to go on my contract. Plus, I have not spoken to anyone and I am fully focused on Palermo."