Manchester City Transfer News and Rumours Tracker: Week of January 19

Manchester City's 2-0 defeat to Arsenal on Sunday has left them five points adrift of Chelsea at the top of the Premier League table. It's a disappointing situation for City, having worked incredibly hard to wipe out the eight-point lead Jose Mourinho's men had established in November.

It's the kind of result which is likely to lead to increased transfer rumours. Will City add to their squad before the window shuts in an attempt to overhaul Chelsea and win their third title in four seasons?

Here's this week's news and gossip regarding incomings and outgoings at the Etihad. 

Real Madrid Flex Muscles in Pogba Race

Massimo Pinca/Associated Press

Tony Stenson, writing in the Daily Star, believes City could be blown out of the water by Real Madrid in the race to sign Paul Pogba from Juventus.

The French midfielder, 21, is considered by many to be the finest young midfield talent in European football. With Yaya Toure coming toward the twilight of his career, very few other players look as well-placed as Pogba to be able to replace him.

However, with Real Madrid set to offer as much as £78 million to secure his services, it may be too much for City to match. 

Falcao's Uncertain Future Has City Watching Closely

Matt Dunham/Associated Press

In one of the more difficult to believe rumours doing the rounds, Duncan Castles of The Times has suggested City have inquired about Radamel Falcao, who continues to struggle to cement a secure first-team place at Manchester United.

Falcao, on loan at Old Trafford from Monaco, is a remarkable player when fully fit. However, as yet, he has failed to convince the watching world that his knee troubles are fully behind him.

He would be an expensive acquisition, and given his limited role at United, it seems highly unlikely to happen.