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Manchester City may be in Houston preparing for their first pre-season game of the summer against Manchester United but that hasn’t stopped the flow of transfer speculation.

This morning’s back pages are full of it, with City’s reported interest in Real Madrid full-back Danilo fuelling many of the headlines.

We’ll start with a story by Simon Stone for BBC Sport. Stone says City and Chelsea are involved in a straight battle for Danilo’s signature – but Sergio Aguero, who is reportedly on the West Londoner’s radar, is going nowhere.

“Manchester City and Chelsea are vying for the £26m signing of Real Madrid's Brazilian right-back Danilo,” Stone writes.

“City manager Pep Guardiola sees Danilo as someone who can play both full-back positions and in midfield, while Chelsea counterpart Antonio Conte wants to strengthen an area of perceived weakness in his squad.

“But Conte will not be signing City's Sergio Aguero, according to Guardiola.

“City's Spanish boss said: "He's our player. He will remain here."

“Conte reportedly wanted to sign the striker as a replacement for out-of-favour Spain forward Diego Costa.

“Danilo, 26, joined Real Madrid from Porto in 2015 but was the Spanish club's second-choice right-back for much of last season.

“He started 17 La Liga matches for champions Real, with Dani Carvajal preferred for most of the big games, including the Champions League final.”

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Fabrizio Romano, Marcus Christenson and Jamie Jackson, writing in the Guardian, believe a deal for Danilo is tantalisingly close.

“Manchester City are set to sign their second right-back in a week with Real Madrid’s Danilo on the verge of following in Kyle Walker’s footsteps and joining Pep Guardiola’s side. City have reached an agreement with Madrid to sign the 26-year-old for €30m (£26.5m) with a potential €5m in add-ons.,” they write.

James Robson of the Manchester Evening News believes Danilo will be joined by Benjamin Mendy.

And Robson says City’s spending wouldn’t end there, with Alexis Sanchez or Kylian Mbappe being considered, as well as a centre-back.

“The Catalan was coy on the specifics of his transfer plans when meeting the media for the first time here in Houston,” Robson writes.

“But it was clear the signings of Ederson Moraes, Kyle Walker and Bernardo Silva have only just scratched the surface of what will be a record spend in this window.

“Real Madrid right back Danilo is close to a £26.5m move - and Monaco’s Benjamin Mendy is on the verge of completing his protracted transfer in a deal worth close to £50m.

“That will take Guardiola’s to more than £200m before Alexis Sanchez is even taken into consideration.

“Despite Arsene Wenger’s insistence the Chilean will remain at Arsenal, City are refusing to end their pursuit.

“They anticipated a fee of £50m being enough to convince the Londoners to sell - but such is the determination of Wenger to keep hold of the 28-year-old that City may be forced to increase their offer.

“Kylian Mbappe remains another player of interest, but will cost considerably more - in excess of £100m.

“City have also put aside around £50m to bring in a top-class centre back.”

That’s all for this morning’s transfer gossip. Stay tuned throughout the day here on mancity.com for updates from Houston before live coverage of City’s game with Manchester United in the early hours of Friday morning!

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