Tottenham Hotspur have informed Manchester City that they will have to splurge £50 million for Kyle Walker.
Man City have been monitoring the availability of Walker and are keen on roping him in before the end of the summer transfer window.
Guradiola is confident of securing the services of Walker and the City bosses have made several attempts to finalise a deal – but have failed to match the asking price so far.
Man City were also keen on signing former Barcelona player Dani Alves this summer.
After a successful spell at Juventus, the Brazilian full-back was heavily linked with a move to Man City.
But the Brazilian full-back has now taken a major U-turn turned down a chance of a reunion with his former boss Guardiola to join the Ligue 1 giants PSG on Wednesday aftertoon.
Alves will now take home a staggering £230,000-a-week wage-packet at PSG – which is more than double what Man City were willing to pay the Brazilian full-back.
Missing out on Alves has dealt the Blues a major blow in their Walker pursuit as Spurs have now understood that they are in the driving seat as negotiations over a transfer fee for the English defender is still on.
Man City have agreed personal terms with Walker but the Spur bosses are not willing to sell him cheap.
It is understood that Spurs chairman is willing to offload the England full-back but he is holding out for a staggering transfer fee of £50m.
Man City were willing to pay under £45m but now they will have to splurge the extra cash, so as not to miss out on another right-back target this summer.
Man City have claimed that Alves took a major U-turn and rejected a move to the Etihad because the Blues were not willing to match PSG’s pay.
But Alves rubbished such claims and revealed that his decision was based on where he felt he could be more successful and add more silverware to his already illustrious CV.
Alves said: “There’s a very interesting project in Paris.”
“I have friends here, I’m a man who loves challenges.”
“If Pep Guardiola and Manchester City feel hurt, I am sorry. But I have come here to be a champion.”
“I’ve had the pleasure of winning the Champions League three times and I want to bring my experience here.”
“The President had a great power of persuasion. I like to make history. We can write it together here.”
“The work that the club has been doing over the past several years is very encouraging. It’s an ambitious team.”