Real Madrid and Barcelona are battling for Manchester City striker Sergio Aguero. The Daily Star says Real last night upped the stakes in their £45m bid to land Aguero from Manchester City.

Barcelona have also entered the race to sign the Argentina striker.

That has spooked Real - who have decided to offer City their choice of either Karim Benzema or Gonzalo Higuain as a sweetener.

Real president Florentino Perez knows he could lose Cristiano Ronaldo this summer and wants a major transfer to help him re-elected get year.

 Will City be tempted by Real's swap offer? Is Aguero better than Benzema or Higuain? Give us your shout below...