Manchester City believe they are close to the £20m signing of Barcelona striker Samuel Eto'o.
City are also battling it out with rivals Manchester United for the signature of Argentine forward Carlos Tevez, who has been on a loan deal at Old Trafford.
Tevez will decide in the next seven days where his future lies, after United made a final take-it-or-leave-it offer to the 25-year-old.
Chelsea have made a last-ditch £70m offer for AC Milan forward Kaka.
The Blues are hopeful that Kaka's personal demands may also price Real Madrid out of the market.
However, Chelsea owner Roman Abramovich has admitted that Madrid are favourites to land the Brazil star.
But new Chelsea manager and former AC Milan boss Carlo Ancelotti has not given up on signing Kaka and even phoned the Brazilian and begged him not to join Real.
However, Chelsea have denied making a world record £73.5m bid for the Brazilian but say they still expect to make a major signing this summer.
If Chelsea miss out on Kaka then that acquisition could be his AC Milan team-mate Alexandre Pato and will offer £38m for the 19-year-old striker.
However, Chelsea could also go after Samuel Eto'o after he was made available by Barcelona president Joan Laporta.
The Blues are also targeting Bayern Munich winger Franck Ribery and Valencia forward David Villa.
Chelsea have opened talks with Portsmouth to re-sign right-back Glen Johnson in a deal that could be worth £17m.
Blues midfielder Deco is on the verge of a move to Inter Milan on a free transfer.
Arsenal are closing in on the £10m signing of Ajax centre-half Thomas Vermaelen.
The Gunners are keen on Juventus and Italy central defender Giorgio Chiellini. (The Times)
But Arsenal striker Emmanuel Adebayor could be on his way to AC Milan with the Italian side set to bid £15m for the Togo international.
AC Milan and Barcelona are lining up Manchester United defender Nemanja Vidic in a £25m deal.
Real Madrid have tabled a £20m bid for unsettled Liverpool midfielder Xabi Alonso.
Liverpool, meanwhile, are interested in Middlesbrough forward Tuncay.
Reds boss Rafael Benitez has also met with Valencia forward David Silva this week and is keen to bring the Spaniard to Anfield.
The Merseyside club have also offered Portsmouth £2m for defender Sylvain Distin.
Aston Villa have bid £7m for Atletico Madrid midfielder Jose Manuel Jurado.
Villa are also interested in bringing former Arsenal midfielder Alexander Hleb back to the Premier League from Barcelona in a £10m deal.
(Full story: Daily Star)
Newcastle midfielder Kevin Nolan is attracting interest from Bolton, Blackburn and Hull. (The Guardian)
Tottenham defender Chris Gunter is wanted by Newcastle, Middlesbrough and West Brom. (The Guardian)
Manchester United trio, striker Fraizer Campbell, full-back Danny Simpson and midfielder Darron Gibson have been placed on the transfer list at Old Trafford.
Tottenham boss Harry Redknapp is to make a fresh £5m bid for Manchester City centre-back Richard Dunne.
Manchester City midfielder Elano has issued a come and get me plea to Serie A champions Inter Milan.
(Full story: The Sun)
Defender Lucas Neill has severed his ties with West Ham and is set to link up with old Blackburn boss Mark Hughes at Manchester City. (Daily Express)
Tottenham defender Vedran Corluka expects Croatia and Shakhtar Donetsk winger Darijo Srna to join him at Spurs.