Real Madrid's chances of signing £64m striker fading, Pep Guardiola makes contact

Real Madrid's chances of landing Borussia Dortmund forward Erling Braut Haaland are reportedly fading with the entrance of Manchester City and Paris Saint-Germain to the race. The two clubs are currently financially superior compared to the Spanish giants, and are expected to have a better chance of signing the Norwegian forward.

It is almost certain that Haaland will leave Dortmund next summer, especially with his £64 million release clause becoming active. There is expected to be a queue of top European clubs fighting for his signature, with Bayern Munich, Chelsea and Manchester United also expected to enter the race for the serial goalscorer.

Real had made Haaland a top priority alongside Kylian Mbappe, but with City and PSG entering the race, their chances have diminished, according to Spanish media outlet AS. Pep Guardiola is expected to have already set up a meeting with Haaland's agent Mino Raiola for January, when they will discuss how to move forward with the negotiations over the striker's transfer in the summer.

The former Barcelona coach is desperate to add a traditional frontman to his squad following the departure of Sergio Aguero in the summer. City wanted to sign Harry Kane from Tottenham Hotspur, but failed to engineer a move despite offering over £100 million to the north London club.

Haaland has now become top priority for the reigning Premier League champions. The Manchester team have an advantage in terms of convincing the Dortmund marksman to choose them, with the Norway international's father having donned the sky blue jersey between 2000 and 2003.

Any move for the 21-year-old is unlikely to be a straight forward one with PSG involved. They are certain to match any offers made by other interested clubs as they are keen to partner Haaland with South American duo Neymar and Lionel Messi at the Parc des Princes.

The Parisian club also see Haaland as the ideal replacement for Mbappe, who has been tipped to leave the Ligue 1 club to realise his dream of playing for Real. Moreover, PSG have a close relationship with Raiola, who was instrumental in them signing his clients Zlatan Ibrahimovic in the past and Gianluigi Donnarumma earlier this summer.

Real are prioritising Mbappe as their star signing next summer, with the Frenchman's contract entering its final eight months with PSG. They are hoping the 2018 World Cup winner's arrival will convince Haaland to choose them, but it remains unclear if they will have the financial clout to sign both players, who are expected to demand hefty wages.