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Manchester City and Chelsea are vying for the £26m signing of Real Madrid’s Brazilian right-back Danilo.

Both teams seek to strengthen the right wing-back/fullback position and City boss Pep Guardiola has admitted that they are interested in signing Danilo.

Speaking in the build-up to Thursday’s pre-season game against Manchester United in Houston, Guardiola said: “Mendy is the same case as Danilo, we have targets and we see what happens. He’s a Monaco player so I’m quiet in my comments.”

Chelsea boss Antonio Conte identified the defender as a key target to offer strong competition for Victor Moses this season.

However, Spanish newspaper Marca say City should sign the player in the coming days after agreeing personal terms.

Reports claim all that is left now is for Real and City to agree a fee between themselves.

The Brazil international Danilo joined Real Madrid from Porto in 2015 but has failed to nail down a regular first-team place at the club.