Liverpool, Tottenham Hotspur and Manchester United are competing to sign Luis Diaz of Porto.

Liverpool had been prepared to pay Porto's £50 million valuation of the 25-year-old.

But Porto is now ready to offload Diaz at a reduced fee of £37m plus an additional £12.5m in performance-related installments. 

Liverpool are now considered the frontrunners to sign Diaz. 

Arsenal are attempting to sign a striker before Monday's transfer deadline.

Arsenal attempted to sign Susan Vlahovic from Fiorentina but he is now on the verge of going to Juventus.

Mikel Arteta ideally wants to strengthen in attack this month with Pierre-Emerick Aubameyang ostracised after being stripped of the captaincy following a series of disciplinary issues, while Alexandre Lacazetteand Eddie Nketiah are both likely to leave the club when their contracts expire at the end of the season.

Arsenal have been told they will have to pay Alexander Isak's €90 million release clause if they want to sign the Real Sociedad striker now.

Lille's Jonathan David is another player under consideration but the Ligue 1 club want to wait until the summer to sell him. 

Newcastle are close to signing Bruno Guimaraes from Lyon for $45 million.

Other clubs, including Arsenal and Juventus, had hoped to buy Guimaraes at the end of the season but Newcastle have got in ahead of them.

Fiorentina are prepared to accept a €75 million ($85 million) bid from Juventus to sign Dusan Vlahovic.

Vlahovic is a 23-year-old striker who has scored 17 goals in 21 matches this season.

Vlahovic also received interest from Manchester City and Arsenal.

Juventus are now working on contract terms with Vlahovic. 

Newcastle could turn to Dele Alli of Tottenham Hotspur if they're unable to reach a loan deal with Manchester United on a loan for Jesse Lingard.

Alli has fallen out of favor under Antonio Conte at Spurs. Alli’s career has stalled in the past two years and his days at Spurs look numbered. 

Manchester City are close so signing Julian Alvarez from River Plate.

AC Milan has also had strong interest in signing Alvarez.

Sources have told ESPN the overall cost of the transfer could be less than £20 million.

Until he is ready to move to England, City will consider loaning him back to River Plate or arranging another loan elsewhere.

Real Madrid has emerged as the favorites to sign Erling Haaland from Borussia Dortmund. Haaland is expected to leave Dortmund at the end of the season due to a €75 million release clause becoming active in his contract at the Bundesliga club this summer.

Manchester United, who had interest in Haaland, are ready to shift to other attacking options.

Real Madrid would like to sign booth Haaland and Kylian Mbappe this summer.

Sources said that although the Haaland camp are admirers of the work done by United interim manager Ralf Rangnick at previous clubs, the prospect of signing for United while they remain in a period of transition, and potentially out of the Champions League, has made the 20-time English champions an unappealing proposition considering the other teams in the race to sign Haaland.

Kylian Mbappe and Paris Saint-Germain are holding talks on a short-term contract extension.

Mbappe's current deal runs out in June and there had been widespread speculation that he would join Real Madrid. Real Madrid were close to recruiting him last summer, but sources told ESPN that PSG rejected a €200 million offer from Madrid in August.

One main factor in convincing Mbappe to stay is that despite being in a dressing room with star names such as Neymar, Lionel Messi and Sergio Ramos, Mbappe has now found the role that he always wanted at the club. 

Zinedine Zidane's potential arrival to the Parc des Princes next season is another factor that could influence Mbappe to extend his stay. 

Newcastle has made an offer to Reims for 19-year-old striker Hugo Ekitike from Reims, but the offer will likely be rejected.

Reims values Ekitike at around $34 million and would like a sell-on clause in any deal.

Ekitike has scored eight goals and provided two assists in 17 Ligue 1 appearances this season in a team 14th in the table. 

Philippe Coutinho is open to leaving Barcelona this month and has received interest from five Premier League clubs, including Aston Villa.

Coutinho is seeking regular football before the World Cup later this year.

Villa are coached by Coutinho's former teammate Steven Gerrard. 

A source close to Coutinho's camp added that talks with all interested parties are still at a very early stage and that "no [club] is being ruled out at this stage."

"It's all to do with the football project more than anything else," the source added.

Everton is also interested in Coutinho.