Chelsea and Manchester City are reportedly set to battle for the signature of Atletico Madrid's Koke as both are prepared to meet the Spaniard's £48m release clause.

Barcelona have been linked with a move for the Atleti playmaker, but the Daily Express claims that the Premier League title rivals have stolen a march in the race to capture the 22-year-old.

The La Liga champions are thought to have rejected overtures from Barca and city rivals Real Madrid, and it appears that the only way Koke will leave the Vicente Calderon is for the release clause to be met.

City coach Manuel Pellegrini is said to be hoping to sign the Spanish international to bolster his team's faltering season, but Chelsea already boast three of Atletico's league-winning side in Diego Costa, Filipe Luis and Thibaut Courtois and so could be in pole position.

Manchester United and Liverpool have also been linked with the midfielder, although a lack of guaranteed Champions League football could count against their chances of luring the player to the North West.