Carlos Queiroz opened the door for Patrick Vieira to join Real Madrid yesterday when he suggested that the Frenchman would make a good midfield partner for his fellow countryman Claude Makelele.
"Makelele and Vieira already play together in the French national team," the Madrid coach said. "They are compatible."
Queiroz said he believed the chances of Vieira leaving Arsenal were "50-50".
Arsenal immediately moved to defuse the speculation that has inflamed an already fraught situation at the club.
"All this speculation is very annoying," the vice-chairman David Dein told Sky Sports News. "Patrick will be with us next season and hopefully for many more seasons to come. (Thierry) Henry and Vieira are not leaving Arsenal Football Club."
Vieira (27), has only one year of his contract remaining and Arsenal are desperate to tie him to a new deal to prevent him walking away on a free transfer next summer. Arsene Wenger and the chairman Peter Hill-Wood have also reacted angrily to speculation that their proposed new ground has left them short of funds.
Juan Sebastian Veron is expected to fly out tomorrow on Manchester United's tour of the United States, which is likely to dampen Chelsea's interest in the short term. The London club have now turned their attentions to the Brazilian captain Emerson, who plays for Roma.
Everton head the list of clubs pursuing Gavin McCann of Sunderland. Having hoped to get £5 million for McCann, Sunderland have dropped the fee to £2 million. But David Moyes was hoping to pay no more than £1 million.
The Leeds manager Peter Reid is ready to make Jody Morris his first signing after the midfielder snubbed an offer from Cardiff City. Morris will join on a free transfer if he passes a medical, which will continue today.
Bolton's attempt to sign Ivan Campo on a three-year contract has stalled after the Real Madrid defender failed a medical.
Tottenham Hotspur were last night discussing personal terms with striker Bobby Zamora after agreeing a fee with Brighton of around £2 million.
Meanwhile, Leicester signed Spurs defender Ben Thatcher for a nominal fee while Wolves opened talks with Steffen Iversen and are hoping to meet Sergei Rebrov after Fenerbahce indicated they would not sign him permanently, having taken him on an 18-month loan last season. Spurs also expect Darren Anderton to move to Portsmouth once he can settle personal terms.
Rangers and Sunderland were embroiled in negotiations last night after the Scottish champions made a surprise move for Kevin Phillips.
The stumbling block is the transfer fee, with Sunderland demanding £4 million for the striker and Rangers prepared to offer £1 million and write off the final instalment - believed to be just under £1 million - owed on Tore Andre Flo's transfer to Wearside last year.