Real Madrid have refused to shelve their bid for Manchester City midfielder David Silva.

The Daily Star says City have opened talks with Silva about a new and improved deal at the Etihad Stadium worth around £200,000 a week.

But sources in Spain suggest Real bosses reckon Silva could still reject a new contract and remains open to a move to the Bernabeu.

Real boss Jose Mourinho has been told he can have Silva and could be set to test the Blues' resolve with a £40m bid.