Manchester City are reportedly prepared to match Chelsea's offer for Atletico Madrid star Falcao and, in doing so, activate the release clause of the Colombian striker.
Falcao, who has also been linked with a transfer to Arsenal, has established himself as the most wanted striker in Europe and now, it would appear, will be at the centre of a wrangle between Chelsea and Manchester City.
Chelsea have been linked with Falcao for some time, and their interested is likely to have intensified after the 26-year-old destroyed the Stamford Bridge club in the European Super Cup.
Manchester City, meanwhile, confirmed they were watching Falcao when the club's chief scout stated on Friday that he had held discussions with Roberto Mancini about the Colombia international.
And now, according to the Daily Mail, both Manchester City and Chelsea are ready to offer £46 million for Falcao - a bid that would trigger the buyout clause written into his Atletico Madrid contract.
Arsenal, meanwhile, would seemingly be unlikely to join City and Chelsea in a bidding war for Falcao, with Arsene Wenger surely reluctant to spend such a fee on the acquisition of just one player.
The Gunners had been linked with a January move for Falcao, as Wenger looks to further compensate for the departure of his Arsenal captain Robin van Persie to Manchester United.