Manchester City’s interest in Malo Gusto remains strong, and TEAMtalk understands they will make a move for the Chelsea right-back in January if the Blues lower their asking price.

City were interested in signing the 23-year-old during the summer transfer window, but Chelsea’s £70million valuation proved a major obstacle to a deal.

That figure would have represented a world-record fee for a right-back, ultimately preventing City from progressing their interest into a successful transfer. At present, the most expensive right-back transfer remains Achraf Hakimi to PSG at £57m.

However, we understand Chelsea’s demands have since dropped, potentially opening the door for City to return to the negotiating table when the January window opens.

Gusto remains high on City’s radar, and the Manchester club are prepared to revisit the situation if the financial conditions become more favourable.

There is, however, an important caveat. City’s ability to strengthen their squad in January could be affected by any penalties arising from their financial rule-breaking case, with the potential consequences forming part of the wider uncertainty surrounding their transfer plans.

Should they be able to recruit, TEAMtalk understands that Gusto is among the players they are keen to pursue, provided Chelsea are willing to lower their valuation further.

Gusto’s situation at Stamford Bridge is also shaped by the competition for places in Chelsea’s squad.

Chelsea depth allows for Malo Gusto sale

Reece James was always expected to be first choice under Xabi Alonso, leaving Gusto facing a battle for regular starts despite his quality and versatility.

Chelsea also have other options available, including new Italian signing Marco Palestra and highly rated academy talent Josh Acheampong. Pedro Neto has also operated at right wing-back for much of the campaign.

James’ recent injury is unlikely to deter City from pursuing a potential deal for Gusto. Chelsea are hopeful their captain will return towards the end of January or in early February, meaning his absence is not expected to fundamentally change the club’s thinking over Gusto’s future or City’s interest in the Frenchman.

That depth could give the Blues greater flexibility when considering Gusto’s future, particularly if a suitable offer arrives and they believe they have sufficient cover in the position.

Gusto, who joined Chelsea from Lyon in 2023, has established himself as a capable Premier League performer, and his age means he still has considerable room to develop. His profile makes him an attractive option for City as they assess their long-term requirements at right-back.

For Chelsea, the key question is whether they would be prepared to sanction his departure and, if so, what fee would be enough to convince them to sell.

Their £70million demand in the summer proved too high for City, but the reduction in their valuation could change the dynamics of negotiations ahead of the winter window.