Tottenham set to swap Gylfi Sigurdsson for Swansea's Ben Davies and sign Holland international Michael Vorm for £3.5m

Tottenham could announce the signing of Ben Davies from Swansea City as early as Sunday evening after completing a deal to sign the Wales left back.

The 21-year-old had a medical with Spurs on Sunday while the two clubs were on their respective tours of the US.

Swansea will re-sign Gylfi Sigurdsson as a straight swap for Davies and, in addition, Mauricio Pochettino has reached a deal to sign goalkeeper Michel Vorm for a fee understood to be in the region of £3.5m.

Reports: Liverpool track Isco as Real Madrid look to fund Rodriguez swoop

Liverpool have made enquiries to Real Madrid over the availability of young playmaker Isco, according to reports in Spain.

The 22-year-old enjoyed a successful debut campaign at the Bernabeu last term, netting 11 goals in 46 appearances, but may find first team chances limited this season following the arrival of World Cup winner Toni Kroos.

The La Liga side are also expected to strike a deal with Ligue 1 outfit Monaco for Colombia star James Rodriguez. The team from the Principality are expected to command a hefty fee off the back of Rodriguez's Golden Boot-winning World Cup campaign, and Isco and unsettled midfielder Angel Di Maria could be sold to fund the transfer.

Liverpool have secured four signings already this summer, Brendan Rodgers making up for the departure of star forward Luis Suarez with the arrivals of attacking duo Lazar Markovic and Rickie Lambert, as well as midfielders Emre Can and Adam Lallana.

Given that the club’s chances of securing a first Premier League title since 1990 were severely hampered by their poor form at the back last season, many have noted the strange absence of any defensive back-up among their top targets this summer.

And it seems Rodgers it still keen to add to his attacking force, with Madrid starlet Isco next on his radar, according to Spanish sports daily AS.

Italian giants AC Milan are also reported to be interested in the attacking midfielder, who signed for Real Madrid from Malaga for £23million last June, while Europa League winners Sevilla are said to be seeking a loan deal for the youngster.

However, AS report that sources close to the Spain international say he is happy and wants to fight for his place at Madrid, though they admit he may look to leave next summer if Los Blancos' new arrivals limit his playing time.

Chelsea edge ahead of Arsenal in race for Khedira

The Gunners have made contact with Real Madrid about a €25m deal for the World Cup winner but the move has stalled and the Blues have now moved for the 27-year-old

Chelsea are emerging as frontrunners in the race to sign Sami Khedira as they step up plans to reinforce their midfield.

The Blues have made contact with Real Madrid about discussing a €25 million deal for Khedira, who has only a year remaining on his contract with the Spanish giants.

Chelsea's move comes as Arsenal's pursuit of the Germany World Cup winner has stalled due to his salary demands. Khedira is believed to be pushing for a €250,000-a-week plus top-up bonuses.

That would make him comfortably the highest paid player at Emirates Stadium, where the top earners are €160,000-a-week duo Mesut Ozil and Alexis Sanchez, but he would fit in with the Chelsea wage structure for A-list players.

Jose Mourinho had made Juventus star Paul Pogba his top target to partner Nemanja Matic in central midfield next season but the Italian club's €75m asking price has put off the west Londoners.

With new signing Cesc Fabregas pencilled in for the No.10 playmaker role next season, Chelsea have begun exploring Khedira as a back-up option to Pogba given his availability and reasonable transfer fee.

Real are willing to offload the 27-year-old for €25m because his contract expires in 12 months' time, when he could leave on a free transfer. The Champions League holders have failed to make any headway in agreeing a new deal with the German and on Thursday completed the signing of his countryman Toni Kroos from Bayern Munich.

Chelsea could be encouraged to bid for Pogba following Antonio Conte's shock resignation as Juve manager earlier this week, although the situation at the Serie A champions is fluid due to doubts about the future of his team-mate Arturo Vidal. It is unlikely that Juve would cash in on more than one of their two prize assets.

Arsene Wenger is ready to pursue alternatives to Khedira as he bids to recruit a proven midfield anchorman this summer, with Southampton's Morgan Schneiderlin among those admired by the Arsenal manager.

The Gunners will imminently confirm the signing of Mathieu Debuchy from Newcastle United for €10m plus add-ons and are closing in on a €4m deal for Nice goalkeeper David Ospina and a season-long loan of Atletico Madrid right-back Javi Manquillo.

Blow for Tottenham! Barcelona could come calling for star defender

Barca are long-term admirers of the Belgium international, who impressed at the World Cup and has admitted he would consider his long-term future at Spurs after returning from Brazil.

New Barca manager Luis Enrique is looking to overhaul his squad this summer following the side’s first trophyless season in six years, and Hunter believes 27-year-old Vertonghen is high on the Spaniard’s wanted list.

“Barcelona are very firmly on the record as saying they will buy at least two defenders this summer, one out and out centre-half and one who can perform in multiple positions,” he told Transfer Tavern.

“One of those could be Netherlands international Daley Blind, but Jan Vertonghen has also been linked to the Nou Camp.

“By no means is there business ongoing with Spurs for Vertonghen, but I know from the club that he is a player they respect, they like and is on their list, so they may try to buy him.

“Barca believe he is a player who brings excellence at centre-back and at full-back, he can play at a pinch in midfield, he brings height and power and they like his style of football.

“These are feelings which only increased during the World Cup.”

Transfer update: Borini to Sunderland talks ‘still ongoing’ amid Liverpool stay rumours

We brought you news on Saturday morning that the Black Cats had agreed a £14million deal for the 23-year-old forward, following his brilliant loan stint at the Stadium of Light last season.

Borini became a firm fan favourite in a red and white shirt last term and made a great impact during his stay, netting a series of crucial Premier League strikes to lift Gus Poyet’s side miraculously clear of relegation.

However, rumours emerged on Saturday afternoon that, while and arrangement between the clubs had been struck, the striker had rejected the move in favour of staying at Anfield.

Borini started and played more than 60 minutes in the Reds’ 2-1 victory over Preston in a pre-season friendly on Saturday, and it was suggested he is keen on staying in Merseyside to break through into Brendan Rodgers’ first team.

But, talkSPORT’s transfer guru Warren Haughton told the Transfer Tavern that, as far as Sunderland are concerned, the £14million fee has been set and talks are still ongoing with the Italian and his representatives.

Transfer rumours and paper review - Sunday, July 20

Here's the top transfer-related stories in Sunday's newspapers...

Jose Mourinho wants to keep 21-year-old Belgium striker Romelu Lukaku at Chelsea this season. (The Sun)

Arsenal are preparing for life without Thomas Vermaelen as Manchester United line up a £10m move for the 28-year-old Belgium defender. (Daily Star Sunday)

AC Milan are interested in signing Nani from Manchester United, but are not impressed by the £11m asking price for the 27-year-old Portugal winger. (Sunday Express)

Fabio Borini's proposed £14m transfer from Liverpool to Sunderland remains in the balance, with the 23-year-old Italian forward not keen on a permanent move to the side he played for on loan last season. (Guardian)

Swansea full-back Ben Davies, 21, is set to have a medical with Spurs ahead of a transfer that will see Gylfi Sigurdsson, 24, rejoin the Welsh club. (Guardian)

Newcastle want to bring former striker Andy Carroll back to the club from West Ham, three-and-a-half years after the 25-year-old left for Liverpool. (Sunday People)

Southampton have targeted Serbia international Dusko Tosic, 29, to fill the left-back spot created by Luke Shaw's departure for Manchester United. (Mail on Sunday)

Arsenal are close to completing a £15.8m deal to sign Italy and ex-Manchester City striker Mario Balotelli, 23, from AC Milan. (Caught Offside)

Netherlands defender Stefan de Vrij, 22, is set to become Louis van Gaal's first signing since he took charge of Manchester United in a £10m deal with Feyenoord. (Sunday Mirror)

Lyon striker Alexandre Lacazette, 23, has agreed a move to Newcastle in principle, but the French club are demanding 20m Euros (£15.8m) for the international forward. (Newcastle Chronicle)

Mexico's World Cup winger Javier Aquino, currently with Villareal, is on the verge of a loan move to Scottish champions Celtic. (Sunday Express)

Van Gaal To Give Youth A Chance

Louis van Gaal has given a number of young players the chance to prove themselves in his first Manchester United squad. Twenty-five players accompanied the new boss on Friday's flight to the USA for their pre-season tour.

Youth-team products Sam Johnstone, Tyler Blackett, Michael Keane, Reece James, Jesse Lingard and Will Keane all made the cut, but there was no room for James Wilson and Tom Lawrence, who made their first-term debuts at the end of last season, or Nick Powell.

United had announced earlier this month that stars like Wayne Rooney, David De Gea and Juan Mata would travel to the USA along with new signings Luke Shaw and Ander Herrera.

Robin van Persie, Javier Hernandez, Marouane Fellaini and Adnan Januzaj are still on holiday after the FIFA World Cup™. Michael Carrick is a notable absentee after undergoing ankle surgery on Thursday morning that could rule him out for the first two months of the season.

I am very happy and really enjoying being at the club and in the city. The first couple of weeks here have been great.

Ander Herrera, new Manchester United signing

In his first press conference, van Gaal said he would spend the next three or four weeks assessing the players he has at his disposal before deciding on potential new signings and departures.

United will play their first match of the tour against Los Angeles Galaxy next Thursday before taking on Roma, Inter Milan and Real Madrid in the International Champions Cup.

Spanish midfielder Ander Herrera, who joined United from Athletic Bilbao last month, is looking forward to the tour. He told MUTV: "It will be a new experience for me because it will be my first time outside Europe. All the people have told me there is a lot of United fans in America and I can't wait to play in front of them.

"I am very happy and really enjoying being at the club and in the city. The first couple of weeks here have been great.

"Training has been good, similar to at Bilbao in that we train a lot with the ball. The coaches want us to have the ball and keep possession, which is great for the players."

Transfer rumours and paper review - Friday, July 18

Here's the top transfer-related stories in Friday's newspapers...

Manchester City midfielder Yaya Toure, 31, has turned down a move to Manchester United. (Daily Star)

Everton midfielder Ross Barkley, 20, is on City's radar to replace Toure if the Ivorian forces through a move away from the Etihad. (Daily Mail)

Arsenal right-back Carl Jenkinson, 22, is a £5m target for West Ham. (The Sun)

Sunderland have made an enquiry for Atletico Madrid's Uruguay international winger Cristian Rodriquez, 28. (Daily Mail)

Deportivo La Coruna are confident that Barcelona striker Bojan Krkic, 23, who has been told to find a new club, will turn down the chance to join Stoke and join them instead. (Daily Mirror)

Crystal Palace have agreed transfer fees for Cardiff striker Fraizer Campbell, 26, and Tottenham midfielder Gylfi Sigurdsson, 24. (Daily Express)

Manager Brendan Rodgers wants to keep on spending even though Liverpool's summer transfer outlay looks set to exceed £100m for the first time in the club's history. (Liverpool Echo)

West Ham have made a bid to take Boca Juniors left-back Emanuel Insua, 23, on loan. (Daily Mail)

Liverpool have enquired about the availability of PSV Eindhoven's £8m-rated winger Zakaria Bakkali, 18. (Daily Express)

Former Manchester City striker Mario Balotelli, 23, has dropped a huge hint that he wants to join Arsenal by being photographed in front of the Gunners' logo. (Daily Star)

Benfica agree deal for Manchester United flop

Bebe is set to end his Manchester United nightmare and join Portuguese giants Benfica.

talkSPORT told you on Tuesday that the Lisbon club had stepped up their interest in the 24-year-old forward, and they are ready to splash the cash after selling Lazar Markovic to Liverpool on Tuesday.

Portuguese newspaper Record believe negotiations between Benfica and United have been concluded, and the player is now waiting for the go-ahead to fly to Lisbon to undergo his medical and sign his contract. He is not expected to be included in United’s squad for their pre-season tour of the USA.

Bebe arrived at Old Trafford in a shock £7.4m deal in 2010 but has managed only two Premier League appearances in four years at the club.

He did, however, make an impact on loan at Pacos de Ferreira last season, when he netted 11 times in 27 Portuguese league outings.

Update - Roma agree personal terms with Liverpool target

Roma have agreed personal terms with Liverpool target Xherdan Shaqiri, according to Italian newspaper Il Tempo.

However, the Serie A giants are yet to reach an agreement with Bayern Munich over the transfer of the Switzerland playmaker.

Bayern’s sporting director Matthias Sammer stated earlier this week that Shaqiri would not be sold but the 22-year-old is a wanted man and could be tempted to leave the Allianz Arena by the prospect of greater first-team opportunities elsewhere.

Now Il Tempo report that Roma have managed to agree a deal with Shaqiri, although they still need to sort out a fee with Bayern.

Liverpool boss Brendan Rodgers has identified Shaqiri as one of his main summer targets as he looks to boost his attacking options following the sale of Luis Suarez, but he faces stiff competition from Italy, as Juventus are also now in the hunt for the former Basel man.