Transfer Update: Man City close to Otamendi deal; De Gea set for £12m signing-on fee

Manchester United goalkeeper David De Gea will receive a £12 million signing-on fee from Real Madrid if he sees out his contract at Old Trafford and move to the Bernabeu next summer.

Manchester City are close to completing the transfer signing of Velencia defender Nicolas Otamendi. The 27-year-old who will cost money in the region of £28.5 million has been linked with a move to Manchester United all summer but is set to join their city rivals.

The Etihad outfit will also improve their transfer bid for former Chelsea player Kevin de Bruyne. The 23-year-old who currently plays for German club Wolfsburg could cost Manchester City up to £50 million after their initial £43 million was rejected.

Tottenham Hotspur are preparing a £15 million transfer bid for West Brom striker Saido Berahino this week. The London club are also interested in signing Manchester United forward Javier Hernandez.

Chelsea have had a £5 million transfer bid for Galatasaray defender Alex Telles rejected. The Stamford Bridge outfit have however announced the signing of Ghanaian player Abdul Baba Rahman from German club Augsburg.

Everton will make a transfer move for Swansea City defender Ashley Williams should defender John Stones leave the Toffees for English Premier League Champions Chelsea.

Real Madrid are set to beat Liverpool to the signing of 21-year-old Inter Milan midfielder Mateo Kovacic.

Real Madrid striker Karim Benzema is focused on life with the Spanish club despite being linked with a move to English Premier League side Arsenal.