Manchester United have suffered a setback in their pursuit of Brazilian defender Miranda.
Spanish sources claim that Atletico Madrid have rejected an audacious £25m bid from Man Utd for their prized 29-year-old centre back.
Mario Balotelli is being watched by Arsenal and Italian giants Napoli [GETTY]
Former Chelsea boss and Manchester United candidate Carlo Ancelotti is looking at the possibility of bringing Liverpool and England winger Raheem Sterling to Real Madrid as a replacement for Arsenal target Angel Di Maria, as he also seeks to beat Barcelona to Uruguay star Luis Suarez.
Arsenal face stiff competition in the race to sign Mario Balotelli as Napoli have made the Italian their top transfer target to replace Barcelona-bound Gonzalo Higuain.
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Arsene Wenger is closing in on French striker Loic Remy – after seeking a character reference on the QPR player.
Remy spent last season on loan at Newcastle United but told manager Alan Pardew that he wanted to play in the Champions League.
Luis Suarez may leave Anfield this summer[GETTY]
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