Transfer Talk: Arsenal agree terms with Schneiderlin

Could Rafa Benitez be on his way back to the EPL?

The Daily Star are reporting that Arsenal have agreed terms with Morgan Schneiderlin but still need to agree a fee with Southamption.

Manuel Pellegrini has until the end of the season to save his job as Manchester City boss according to the Guardian.

City face the prospect of a last-16 exit in the Champions League after losing their first leg tie 2-1 to Barcelona at home and their Premier League title bid has been derailed by a 2-1 defeat at Liverpool.

The Guardian have suggested the Chilean will be axed by the City board should he fail to claim either the Premier League trophy or Europe's top prize, with Bayern Munich's Pep Guardiola seemingly their top target.

Guardiola will still have a year left on his deal at the Allianz Arena at the end of the current season but the former Barcelona boss is thought to be keen to manage in the Premier League at some stage in his career, although City could face a battle to convince him to move to England this summer.

Atletico Madrid coach Diego Simeone has been mooted as a potential candidate to replace Pellegrini in the past but reports suggest the Argentine is not a contender as he is "viewed as being too pragmatic in style".

However, they do claim former Liverpool boss Rafael Benitez could be a shock target and he is open to leaving current club Napoli when the season and his contract come to an end in June.

The Daily Star suggest Carlo Ancelotti will also be on City's shortlist should they choose to replace Pellegrini, but convincing the Italian to leave Real Madrid may prove too difficult even for City's ambitious board.

Meanwhile, the Daily Telegraph believe that Spurs goalkeeper Brad Friedel could swap White Hart Lane for Stamford Bridge.

Friedel, who will be 44 in the summer, is being line up by Chelsea should Petr Cech decide to move on in search of first-team football after being usurped as the club's number one by Thibaut Courtois.

Inter Milan striker Mauro Icardi has been linked with the likes of Arsenal, Chelsea and Manchester United but the Nerazzurri have no intention of selling the forward, according to the Daily Star.

The Daily Express believe the same three clubs are tracking Real Madrid defender Raphael Varane, who is ready to quit the Bernabeu after dropping down the pecking order.

The Frenchman has worked with Chelsea boss Jose Mourinho in the past when the Portuguese manager was in charge of Real but the Express say Varane is keen on a move to United.

United are eager to bolster their defensive options and Varane could well be a target for boss Louis van Gaal, with a 30million transfer fee suggested by the report.

Finally, Arsenal have reportedly agreed terms with Southampton midfielder Morgan Schneiderlin ahead of a potential summer move to the Emirates.

The Daily Star claim the Gunners have reached a deal with the Frenchman but are yet to come to an agreement with Saints.

Schneiderlin was keen to leave St Mary's last summer but was denied a move, although Southampton's stance could have now softened.

A fee in the region of 20million to 25million has been suggested but the report claims Barcelona could rival the Gunners, although they are currently under a transfer embargo until January 2016 and so the north London outfit should be confident of beating the Nou Camp side to his signature.