The English Premiership leads the way in Europe - even though the top continental clubs make more money.

Yesterday's Deloitte and Touche report into the financial state of the Premiership makes a favourable comparison with Serie A in Italy, Spain's Primera Liga, plus the French and German competitions.

Unlike their major competitors, England's top clubs own their own grounds and have a corporate and merchandising business which has developed to a far greater extent.

With two English sides reaching the last eight of the Champions League and Leeds and Arsenal making it to the semi-finals of the UEFA Cup, it appears the English league is about to assume the position it held at the top of European football in the late 1970s and early 1980s.

However, a disparity in television incomes between Manchester United and rivals such as Barcelona and Juventus continues to erode what should be a huge financial gulf in favour of the English champions.

Manchester City are on the brink of elevating themselves into a new financial league that would see them benefit from their return to the Premiership to the tune of £35 million.

The renewal of hostilities with Manchester United, as opposed to Macclesfield 18 months ago, has prompted an approach from undisclosed backers who are willing to swell City's finances by £20 million.

Negotiations are at a preliminary stage, but the Maine Road hierarchy are confident they can strike a deal that will ensure they will not be Premiership paupers next season.

Arsenal coach Arsene Wenger has insisted the Gunners can stake a serious claim to Manchester United's Premiership dominance next season and insisted the likes of Emmanuel Petit and Marc Overmars - rumoured to be on their way out of Highbury - are going nowhere.

"Marc and Emmanuel are two world-class players. We want to fight at the top level and to do that you have to keep your world-class players. I am always surprised to read that some players are leaving when I know the reality of the situation," Wenger said.