Manchester City have reduced their demands for Gabriel Jesus but Arsenal could face competition from Chelsea, according to reports.

Speaking to The Football Terrace, CBS Sports’ Ben Jacobs reported that Manchester City were initially asking for £55m to sell Gabriel Jesus to Arsenal this summer.

Arsenal felt this fee was too high, and City have since dropped their asking price by around £10-12m. That new fee is more in Arsenal’s ballpark.

Jacobs adds that though Arsenal have made enquiries and spoken about terms, they are yet to table a formal offer. But they believe they can get a deal over the line.

This new reported asking price of £43-45m is roughly consistent with the latest from Fabrizio Romano. Writing for CaughtOffside, Romano claimed City are now asking for €50-55m, which converts to £43-47m.

But the biggest negative in Romano’s report is that Chelsea have made contact over a move for Jesus in recent weeks.

There’s no suggestion anything is particularly advanced on that front, and Jesus is just one option Chelsea are considering alongside Christopher Nkunku, but it gives Arsenal something else to think about.

It’s worth mentioning that this is the third name of a potential rival for Jesus to crop up in recent weeks. Initially, the media tried to pit Arsenal against Spurs, then Real Madrid, and now Chelsea.

It’s possible all three clubs really do have an interest in the striker, but it’s also possible it’s a tactic from Manchester City’s side to try and encourage Arsenal to make a larger bid.

The 25-year-old has just concluded his spell on international duty, so he’s now expected to resolve his future with his representatives.

He scored 13 goals and assisted 12 in 41 City appearances this season, a goal or assist every 103 minutes.