Danilo: Manchester City and Chelsea both want Real Madrid defender

Danilo won the Champions League with Real Madrid last season but did not play in the final

Manchester City and Chelsea are vying for the £26m signing of Real Madrid's Brazilian right-back Danilo.

City manager Pep Guardiola sees Danilo as someone who can play both full-back positions and in midfield, while Chelsea counterpart Antonio Conte wants to strengthen an area of perceived weakness in his squad.

But Conte will not be signing City's Sergio Aguero, according to Guardiola.

City's Spanish boss said: "He's our player. He will remain here."

Conte reportedly wanted to sign the striker as a replacement for out-of-favour Spain forward Diego Costa.

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City 'talking to three or four players'

Danilo, 26, joined Real Madrid from Porto in 2015 but was the Spanish club's second-choice right-back for much of last season.

He started 17 La Liga matches for champions Real, with Dani Carvajal preferred for most of the big games, including the Champions League final.

City, who finished third in the Premier League last season, have already signed four players this summer - goalkeeper Ederson Moraes, right-back Walker and winger Bernardo Silva, plus teenage midfielder Douglas Luiz.

Speaking in the build-up to Thursday's pre-season game against Manchester United in Houston, Guardiola said they were talking to "three or four" more.

"They are young players, with the next three, four, five years in mind," he added.

"We have options for players coming, but until the deal is done, out of respect for the other clubs I cannot say anything."

As well as Danilo, City have also been linked with Monaco left-back Benjamin Mendy.

Guardiola said: "Mendy is the same case as Danilo, we have targets and we see what happens. He's a Monaco player so I'm quiet in my comments."

Aguero staying at Etihad

Aguero has scored 122 Premier League goals

Aguero, 29, scored 20 Premier League goals last season but lost his starting place to Gabriel Jesus in February, leading to speculation he may leave.

City chairman Khaldoon Al Mubarak said at the end of the season that the Argentine's future was "never in doubt".

And Guardiola confirmed on Wednesday that Aguero is staying.

Iheanacho close to Leicester move

While Aguero is staying at Etihad Stadium, fellow striker Kelechi Iheanacho is close to completing a £25m move to Leicester City.

The 20-year-old has scored 21 goals in 64 games in all competitions since making his debut in 2015.

Guardiola said: "Kelechi's a young player. It's not easy for him.

"He needs to play at that age and that's why he and the club decided it was best for him to leave."

Another striker, Wilfried Bony, who spent last season on loan at Stoke having moved to Manchester City from Swansea for £28m in 2015, is absent from the club's pre-season tour of the United States.

Guardiola said Bony had "a little problem" and the 26-year-old would have travelled "if he wasn't injured".