Manchester City and Chelsea are keeping tabs on Alphonso Davies’ contract situation at Bayern Munich, according to The Mirror.

Both clubs are looking to recruit a new left-back and they have identified the Canadian international as a potential target for the summer transfer window.

Davies’s contract has less than 18 months left to run and Bayern may have to consider selling the defender at the end of the season if he doesn’t put pen to paper on an extension.

The Mirror claim that the fullback has rejected Bayern’s latest proposal, which is said to be worth around £8.5m a season or £163,000 a week, with the player holding out for £11m a year.

Davies is widely regarded as one of the best left-backs in world football

City’s interest in the 23-year-old is not a surprise. He has pace to burn, having clocked speeds of up to 23mph in the Bundesliga and Champions League.

With manager Pep Guardiola having deployed centre-backs such as Josko Gvardiol and Nathan Ake on the left-hand side of defence this season, bringing in a specialist like Davies could be considered.

City won’t be the favourites for Davies’ signature

While City and Chelsea are both believed to be in contention to sign the Canadian, it has been widely reported that the player would prefer a move to Real Madrid.

The La Liga club are in the market for a new left-back, and they won’t have any issues paying the salary that Davies is demanding.

Of course, City’s chances can’t be written off. Real may have limited resources, especially if they secure the services of Kylian Mbappe from Paris Saint-Germain, so that may give the Premier League champions the opening they need.

Chelsea, meanwhile, are unlikely to present much of a threat. They are not going to be playing in the Champions League next year, while they may not be able to match Davies’ wage demands.