Chelsea & Man City alerted to Davies transfer as contract saga rumbles on

Chelsea and Manchester City are among the clubs monitoring Alphonso Davies' contract situation at Bayern Munich.

The Canadian left-back's current deal is due to expire in the summer of 2025 and talks over an extension are yet to reach a positive conclusion.

Davies recently lost his place in Thomas Tuchel's starting XI to Raphael Guerreiro amid concerns the saga is now affecting his performances on the pitch. But the 23-year-old's agent Nedal Huoseh has since declared his client is fully focused on Bayern, who are planning to hold further talks to resolve the issue in the coming weeks.

Their latest contract proposal is understood to be worth around £8.5million per season. Sources in Germany suggest Davies has been looking for up to £11million - meaning it's highly likely there is still some negotiating to do before an agreement is reached.

However, Real Madrid are also in the picture as they're plotting a summer transfer swoop after identifying Davies as one of their top targets alongside Kylian Mbappe.

Los Blancos are thought to view Davies as an upgrade on Ferland Mendy, who could be moved on at the end of the current campaign. Yet Chelsea and City could also enter the running if Bayern fail to finalise a new deal for Davies before the end of the season.

In which case, the Bavarian giants will be forced to consider permanent offers for the speedy starlet as he is due to enter the final 12 months of his contract on July 1.

Chelsea are targeting a new left-back in the summer as competition for Ben Chilwell with Levi Colwill expected to displace Thiago Silva at the heart of defence - though it's not a given they will move for Davies if he is demanding a substantial wage at Bayern.

Ian Maatsen's future will be reassessed following his loan with Borussia Dortmund while Marc Cucurella could also be sold. Bayern thought they had a broad agreement in place with Davies over a contract extension last Spring but the issue became complex and was later pushed to one side.

Tuchel said earlier this week when asked about Davies being dropped to the bench: "'Phonzy' is a very nice and sensitive guy. He is self-critical and I think the situation is holding him back more than inspiring him.

"Overall, he has lacked a bit of confidence over a longer period of time. But, of course, it's important that he shapes our game with his pace.

"We're working on making sure he's not afraid to take risks and continues to find his confidence. He's important against the ball. We're working on all the issues and will continue to trust him because we know he's a good guy."