Transfer gossip: Sanchez, Costa, Ozil, Iniesta, Ancelotti, Icardi, Werner

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Arsenal forward Alexis Sanchez, 28, is wanted by Real Madrid. (Don Balon - in Spanish)

New Crystal Palace boss Roy Hodgson is plotting a January move for Arsenal and England midfielder Jack Wilshere, 25. (Daily Mail)

Palace have promised Hodgson £40m to spend in January. (Daily Star)

Atletico Madrid are increasingly confident they have made a breakthrough in negotiations to re-sign 28-year-old forward Diego Costa from Chelsea. (Sky Sports)

Atletico are hopeful of concluding the deal for Costa within the next fortnight. (Daily Mail)

Costa was due to arrive back in London from Sao Paulo on a flight on Tuesday, but his ticket went unused. (Marca - in Spanish)

Arsenal manager Arsene Wenger denies reports that contract negotiations with playmaker Mesut Ozil have broken down. The 28-year-old's current deal at the Emirates expires at the end of this season. (Daily Mirror)

Tottenham and England midfielder Dele Alli, 21, is being courted by super agents Jorge Mendes and Mino Raiola. (Times - subscription required)

Inter Milan will offer 24-year-old striker Mauro Icardi a new contract with an increased release clause of more than £100m to try to ward off any approaches from Arsenal, Chelsea or Manchester United. (Premium Sport, via Talksport)

Midfielder Andres Iniesta, 33, will sign a new deal at Barcelona instead of joining Juventus, says the Italian club's chief executive Giuseppe Marotta. (La Sexta, via Goal)

Tottenham, Everton and Burnley are all interested in Werder Bremen midfielder Thomas Delaney, 26. (Sun - via Weser Kurier)

Everton are weighing up a January bid for Celtic's Scottish right-back Anthony Ralston, 18. (Sun)

Former Chelsea boss Carlo Ancelotti will seek a return to the Premier League next summer if Bayern Munich trigger a break clause in his three-year contract as head coach. (ESPN)

RB Leipzig will offer Liverpool target Timo Werner a new contract, but insist they are under no pressure to sell the 21-year-old forward. (Sky Deutschland, via Talksport)

Barcelona will not return with a fresh bid for Liverpool's 25-year-old playmaker Philippe Coutinho, instead turning their attention to 26-year-old Nice attacker Jean Michael Seri. (Daily Mirror)

Real Madrid are interested in signing Manchester City's promising 18-year-old midfielder Brahim Diaz. (OK Diario, via Talksport)

Arsenal and Leicester tried to sign 29-year-old Schalke defender Benedikt Howedes before the Germany international joined Juventus on loan, says his agent. (Bild - in German)

Burnley have taken former Manchester United goalkeeper Anders Lindegaard, 33, on trial. (Lancashire Telegraph)

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Meanwhile...

Former Premier League striker Marcus Bent, 39, has signed for ninth-tier Southern Combination League side Wick. (Bognor Regis Observer)

The best of Wednesday's gossip...

Sporting Lisbon midfielder William Carvalho, 25, still wants to join West Ham despite the breakdown in relations between the two clubs. (Daily Mirror)

Manchester City manager Pep Guardiola has told midfielder Yaya Toure he must force his way back into his first-team plans, revealing the 34-year-old has been left out for "sporting" reasons. (Daily Telegraph)

Arsenal have not held contract negotiations with midfielder Mesut Ozil since February. The 28-year-old Germany international has one year left on his deal. (SportBild via Metro)

Reports in Germany say Ozil is preparing to leave on a free transfer when his contract expires next summer. (Sun)

Chelsea striker Diego Costa, 28, has finally left Brazil and has arrived in Madrid to try to force through his transfer to Atletico. (Gianluca di Marzio via Metro)