Manchester City is set to lose out in the chase for one of their top transfer targets, while Liverpool is monitoring a 20-year-old American.

That and more in another edition of Rumour Mill!

Manchester City are set to cop a major transfer blow, with top target Frenkie De Jong to join Paris Saint-Germain, according to The Mirror.

The report suggests PSG are willing to pay Ajaxís huge asking price of £66.4m (A$), beating the Premier League champions to the young gunís signature.

Pep Guardiola had identified the Dutchman as his No. 1 midfield option and sees him as the ideal longterm replacement for 33-year-old midfielder Fernandinho.

De Jong allegedly had City as his first choice destination, but City didnít agree to meet the whopping fee that the French champions are set to meet.

Barcelona were also in the race for the young gun, but are also set to miss out.

Meanwhile, Guardiola is set to land a considerably lower price midfield target.

Sky Sports report the Citizens are close to signing Ante Palaversa from Hajduk Split for a fee Ďin the region of £7m.í

The 18-year-old holding midfielder is considered one for the future rather than a player likely to step into the shoes of the soon to be 34-year-old Brazilian. Palaversa currently captains the Croatian U19 national team and has netted three times in 11 caps.

He has already broken into the Hajduk first team, making 17 appearances so far this season and scoring twice in the process.

Liverpool are reportedly eyeing a move for USA midfielder Weston McKennie.

The 20-year-old has been monitored by Reds scouts during his rapid rise with Bundlesiga outfit Schalke, with interest allegedly dating back two years.

According to The Sun, manager Jurgen Klopp is contemplating a £20m move either this month or at the end of the season in the hope of landing McKennie.

The young gun can play in midfield or defence, and already boasts seven senior caps for America and one goal. Heís played 13 times in the German top flight this season so far.

Cardiff have agreed a deal to bring a new striker to the club in the coming days according to Sky Sports News.

The report suggests an £18m deal has been struck to bring Nantes frontman Emiliano Sala to the Premier League outfit.

However, the move is being stalled because his French side are keen for him to play one final game for the club on Sunday before completing his English switch.