Tottenham are continuing negotiations with Lyon for goalkeeper Hugo Lloris.

Spurs have tabled a £12 million offer for the France No1, which falls short of Lyon president Jean-Michel Aulas' £16 million asking price.

French sources say Liverpool and Arsenal are also interested in Lloris, but it is Spurs which have shown their hand.

Talks are continuing between the two clubs, with those close to the table saying Aulas is prepared to back down and agree a fee closer to Tottenham's opening offer.