Arsenal and Chelsea remain in contention to sign Manchester City centre-back Eric Garcia following an unexpected development in the defender’s contract negotiations with Barcelona, according to the Daily Star.

It was widely expected that the Spaniard, who has seven senior caps for his country, would move to the Camp Nou on a free transfer in the summer, but talks between the La Liga club and the player have run into difficulties.

Barca have reportedly withdrawn their original five-year contract proposal to Garcia and have now offered a new deal on reduced terms, which has left the centre-half decidedly unimpressed with how the situation has been handled.

It is believed that the 20-year-old has been told he has until the end of this month to make a final decision. Were he to reject the contract, the Gunners are expected to make their move.

Garcia worked under Mikel Arteta when the Gunners boss was assistant manager at City so the pair do know each other very well. That may well give them the edge over Chelsea.