Valencia have told Manchester City they can sign striker David Villa - for £120 MILLION.

The Mirror says City supremo Garry Cook brought in top officials and agents to hammer out a deal - and the Arab-backed money men were willing to shatter the British transfer record with a £40m-plus bid.

But City, who gave the Villa and Valencia negotiators VIP treatment, were rocked when the fee was revealed. And the Spanish side are not willing to drop the price.

Cook and boss Mark Hughes are bitterly disappointed that the move now looks doomed. They are finding it almost impossible to land their targets despite their new-found wealth. Valencia have financial problems but refused to go lower than £120m.