Manchester City have reportedly decided that they are not prepared to pay above their valuation of Southampton defender Virgil van Dijk.

Earlier this month, boss Pep Guardiola indicated that he was keen to sign a defender during January, with Benjamin Mendy out until the spring and Vincent Kompany continuing to struggle for fitness.

Van Dijk is considered to be one of Guardiola's main defensive targets but according to the Manchester Evening News, City are unlikely to spend over £60m for the Dutchman.

During the summer, the Saints centre-back attracted interest from City, Liverpool and Chelsea but when Liverpool dropped out of the running due to their excessive approach, neither City nor Chelsea were able to wrap up a deal.

All three clubs allegedly remain keen on the 26-year-old, but City are said to have set themselves a limit in how far they are prepared to go to land the player, who wants to leave St Mary's.

Southampton head coach Mauricio Pellegrino says that he wants to keep Van Dijk on the south coast.