Terry has been the target of two bids form City, who may go back for a third attempt should the talks not go well. Meanwhile, Bayern Munich claim there has been no contact with City regarding a possible deal for Brazilian defender Lucio.
The 31 year old central defender was another apparent target for Mark Hughes after seemingly missing out on Terry, but the German club say they have not met with anyone nor have they received an enquiry or phone call about the player.
In other news, it has been rumoured that Craig Bellamy may be on his way out of Eastlands, with Spurs likely suitors. The Welsh striker was brought to the club by Hughes during the January transfer window but injury forced him to miss the final few games of the season.