Tuesday's gossip column - transfers and rumours
For updated transfer news and gossip throughout the day, read our breaking news service Sportsday Live.
Manchester City manager Roberto Mancini wants to sign £12m-rated Corinthians star Paulinho, 24, who has eight Brazil caps, in January. Mario Balotelli, 22, could be sent on loan to AC Milan to make way for the midfielder.
Real Madrid are confident they can beat Chelsea and Manchester City to Atletico Madrid's Colombia striker Radamel Falcao, 26, whose five goals in the 6-0 win over Deportivo La Coruna at the weekend took his tally to 19 for the season.
Arsenal are set to move for Manchester United winger Nani. The Portuguese, 26, has not played since the start of November and there has been no progress on an extension to his contract, which expires in 2014.
Newcastle striker Demba Ba will be sold to either Arsenal or Liverpool in the first week of the transfer window and they will attempt to replace him with Marseille's France forward Loic Remy, 25.
Real Madrid are close to agreeing a five-year deal with Spanish midfielder Jose Rodriguez, 17, who has been targeted by Arsenal.
Southampton are making a £2m move for Colombian midfielder Carlos Sanchez, 26, who plays for Chilean side Rangers and was linked with Reading and Bolton during the summer. Saints manager Nigel Adkins is also considering moves for Blackburn goalkeeper Paul Robinson, 33, and defender Scott Dann, 25.
Leeds manager Neil Warnock wants to bring winger Max Gradel, 25, back to Elland Road - if he is unable to make 29-year-old Jerome Thomas's loan signing permanent.
Huddersfield boss Simon Grayson is ready to pay £1m for West Brom striker Chris Wood, 21, when he finishes his loan spell at Millwall.
Wigan are taking former Swansea midfielder Ferrie Bodde, 30, on trial. The midfielder has suffered a succession of knee injuries recently that saw him released by the Welsh club.
Tottenham midfielder Adam Smith, 21, is in talks with Millwall over extending his loan until June.
Manchester City manager Roberto Mancini angered senior players with his criticisms of goalkeeper Joe Hart in the dressing room after Sunday's 3-2 defeat to Manchester United.
Mancini believes his Manchester City side are better than Manchester United despite trailing their neighbours after Sunday's loss. He told a function in Italy: "United have more experience but we have a much better team and play much better football."
Manchester City fear their attempts to identify the fan that struck Manchester United's Rio Ferdinand with a coin could take weeks.
The chairman of Kick It Out, Lord Herman Ouseley, has criticised the Football Association, the Premier League, Chelsea and Liverpool for a failure of "morality" and "leadership" over their handling of racism incidents.
Chelsea midfielder Oriol Romeu may miss the rest of the season with a knee injury, sustained in the 3-1 win at Sunderland. The Spaniard, 21, underwent surgery on Monday, according to Catalan radio station RAC1.
Barcelona midfielder Cesc Fabregas could be out for five weeks with a thigh problem. The former Arsenal man limped out of the 2-1 win at Real Betis at the weekend.
A total of 67 previous and current Rangers players are involved in a players' union bid to take legal action against the club over the transfer of their contracts in the summer, when the Ibrox outfit were re-launched by a new company.
Former Barcelona coach Pep Guardiola, who is currently taking a break from football, would be better suited to Bayern Munich rather than Chelsea or Manchester City, according to Bayern legend Oliver Kahn.