Manchester City were heavily linked with a move to sign Alexis Sanchez from Arsenal this month. However, Manchester United stepped up and won the race to lure the Chilean international to Old Trafford.
After losing out to the Red Devils for Sanchez, Man City boss Pep Guardiola could lose out on another top transfer target in the form of Brazilian international Fred.
Earlier this month, The Daily Star reported that Arsenal and Manchester United are front runners in the race to sign the South American midfielders from Ukrainian side Shakhtar.
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Now, the British source have mentioned that it could be a battle between the two Manchester clubs to secure the signature of Fred, who is valued at 50 million pounds €57million.