West Ham have accepted defeat in their battle to keep hold of Marko Arnautovic.

That's according to Foot Mercato, which report the Hammers are due to accept a €40m offer from Shanghai SIPG for the Austria international.

The Chinese Premier League outfit have accelerated their push this week and struck personal terms with Arnautovic over a three-year deal.

The striker has also slapped in a new transfer request, which has upset Hammers management.

However, with Shanghai SIPG's new offer about to arrive, the Londoners now accept they must now sell Arnautovic to give themselves time to find a replacement.