Kevin Keegan is close to making Nicolas Anelka his fifth and most prominent signing since Manchester City's promotion to the Premiership after opening talks on a club-record £13m Stg move.

Willie McKay, Anelka's Monaco-based agent, confirmed that City had established themselves in pole position and that the deal "could be finalised before the end of the week". But City manager Kevin Keegan is acutely aware that seven other clubs, including Bayern Munich, Fulham and Newcastle United have also spoken to the player's representatives.

And Anelka has been linked with Manchester United after Liverpool on Monday cancelled plans to turn his spell on loan from Paris St Germain into a permanent move. Keegan has a strong relationship with McKay, working with him to complete the transfers of Lucien Mettomo, Ali Benarbia, Alain Toure and, most recently, Sylvain Distin.

"The interest in Nicolas is phenomenal. He is wanted by three Spanish clubs, a massive club in Germany and three Premiership clubs apart from Manchester City. But he has his heart set on playing next season for Kevin, for whom he has enormous respect," said McKay. "I think the move to Maine Road could be finalised before the end of this week."

He added that Anelka, 23, had spoken to Benarbia, a former PSG team-mate. "Ali really sold Manchester City to him. He told Nicolas all about the fantastic fans at Maine Road, the new stadium and Kevin's plans to turn City into a major Premiership force." Keegan has already signed Peter Schmeichel from Aston Villa, Tyrone Loran from Volendam, Mikkel Bischoff from AB Copenhagen and Distin from PSG, as well as coming close to pulling off an audacious offer for Bayern's Stefan Effenberg.

Middlesbrough are to appeal against a decision by the High Court to throw out their claim for £7.5m Stg damages against Liverpool over the transfer of Christian Ziege two years ago. "It is not so much that the claim is fanciful, it is that it does not exist," said the judge who had described the claim as "an important case for the world of football".

As an example, he said: "Would a court ever consider awarding damages on the basis of a probability that a Premiership club would have finished 10th rather than 11th on the basis of a player it has lost? I believe not."

Alex Ferguson has reflected on Manchester United's barren season and reiterated his regret at missing out on Paolo di Canio. Ferguson had been keen to sign the fiery Italian striker from West Ham back in January, but was forced to pull the plug on the deal when Dwight Yorke refused to join Middlesbrough.

The Old Trafford chief certainly made Yorke pay subsequently as the former Trinidad and Tobago striker has not played for the Reds since then.

"I was very, very keen," he said on MUTV. "I think Paolo's one of the best players in the Premier League.

"I think he would have been a fantastic player to bring in at that time because Diego Forlan was young. He would have added that little bit extra because he's a fantastic player.

"I wanted that extra player with experience, like Paolo, who would have given us a terrific lift, but it didn't materialise because I couldn't sell Dwight Yorke. Dwight wouldn't go to Middlesbrough, which is something I'm sure he regrets now."

"Between him and his agent they asked for a terrible amount of money, which Steve McClaren quite rightly wasn't prepared to pay. That deal floundered and the Paolo di Canio deal also floundered."