The Independent is reporting that contract talks between the highly-rated 17-year-old midfielder and Manchester City have broken down and that Arsenal and Spurs are now “circling”.
The same story claims that the Citizens are “desperate” to keep hold of the teenager and have offered him a three-year contract worth around £30,000 a week.
But the player has still not signed the new deal and according to the report, that has prompted renewed interest in the situation from both the Gunners and Spurs.
The two north London sides are both said to have a “long-standing” interest in Sancho and are thought to want to take advantage of his desire to move back to the English capital.
The England teenager has one season left on his scholarship deal at Manchester City.
The Independent claims that the Citizens would be entitled to between £3m and £4m in compensation should he leave The Etihad this summer.
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