Real Madrid have named Carlo Ancelotti as their new coach today, on a three-year contract with former France manager Laurent Blanc replacing the Italian at PSG on a two-year deal.

The developments will finally see Gonzalo Higuain depart the Bernabeu with Ancelotti expected to sanction the move to either Arsenal or Juventus shortly, the Independent reports.

The Serie A champions have rivalled the Gunners for the signing of the Argentine international with both clubs said to have agreed personal terms with the player and lodged official bids recently.

Juventus though, could be ready to let Arsenal win the race for Higuain after agreeing on the transfer of Tevez from Manchester City.

Manchester City agreed the sale of Carlos Tevez to Juventus for £10m – at least a third of the fee they paid for him – though with personal terms yet to be agreed they face an anxious wait as they seek to lose his £200,000-a-week wages.

Arsenal are prepared to pay a record-breaking transfer fee and make Higuain the club's best paid player to ensure they capture their first major summer transfer target.

Arsenal's previous record transfer fee was the £15m paid to Zenit St Petersburg for Andrey Arshavin in 2009.

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Villarreal are ready to hijack Sunderland’s move for full-back Lucas Orban after the conclusion of the Argentine league, The Sunderland Echo reports.

The Echo revealed earlier this month how Orban, one of the Black Cats’ principle summer targets, wanted to finish his season with Argentina outfit Tigre before deciding on his future.

Tigre’s campaign drew to a close on Saturday and the left-back is now expected to discuss his next move with his family.

Sunderland remain confident of landing the 24-year-old, although under Premier League rules, they would need to agree a deal with both Tigre and River Plate, who each own half of his registration.

But Villarreal, together with Boca Juniors, are keen to beat Sunderland to the signing of a player who has earned rave reviews this season.

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Swansea face competition from a host of clubs across Europe for the signature of Vitesse Arnhem striker Wilfried Bony.

The Swans are believed to have made a bid for the prolific Ivorian, who scored 31 goals in the Dutch top flight last season.