Chelsea and Manchester City target Jose Luis Gaya: Valencia 'advance' new deal negotiations

The hopes of Chelsea and Manchester City to secure the services of La Liga sensation Jose Luis Gaya have suffered a blow after reports in Spain claimed Valencia have made progress in getting the player to commit his long-term future to the club with a new deal.

The 19-year-old defender is proving to be a sensation in La Liga after establishing himself in Nuno's starting line-up following the departure of Juan Bernat to Bayern Munich.

Spanish newspaper AS reported earlier in March that Real Madrid have Gaya on the top of Carlo Ancelotti's summer shopping list, while both Premier League giants were willing to meet his €18m (£13m, $19.5m) release clause.

According to those reports, City are looking for a replacement for out of favour Aleksandar Kolarov, while Jose Mourinho is said to be in the market for a left-back amid reports Filipe Luis could return to Atletico Madrid at the end of the campaign.

Other reports in England have recently claimed both clubs are also monitoring the situation of West Ham left-back Aaron Cresswell regarding a summer approach.

Valencia have been trying to ward off suitors by offering Gaya a new lucrative deal in exchange for an increase in his low release clause.

But earlier in April, Valencia-based newspaper Super Deporte reported the club had broken negotiations with the player's agent as the two parties were completely distant, with Los Che willing to increase his clause to €50m and the player demanding a lower price to facilitate a future exit.

However, reports from Super Deporte and Marca claimed after new meetings between Gaya's agent and Valencia's officials, the negotiations have endured a new twist and a positive outcome is closer than ever.

Super Deporte says Gaya's desire to stay at Valencia has been key in the latest development, while Marca adds the new deal could be announced imminently.