Manchester City's pursuit of West Ham United midfielder Lucas Paqueta has been placed on hold and is in danger of collapsing, according to a report.
The Citizens have stepped up their interest in the 25-year-old over the last few weeks after completing deals to recruit Mateo Kovacic and Josko Gvardiol.
Pep Guardiola is in the market for a new midfielder following the departure of Ilkay Gundogan to Barcelona and the long-term hamstring injury suffered by Kevin De Bruyne, who is facing up to four months on the sidelines.
Paqueta was on Man City's radar last summer before he eventually joined West Ham from Lyon for a club-record £51m, penning a contract until June 2027.
The Brazil international scored five goals and registered seven assists in 41 appearances for the Hammers across all competitions and helped David Moyes's side win the Europa Conference League.
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However, Paqueta is keen to depart West Ham after just 12 months at the club after learning of interest from Man City, and he is understood to have already agreed personal terms with the Citizens over a six-year contract.
Moyes confirmed last week that West Ham have received an offer from the treble winners for Paqueta that fell short of their valuation of the midfielder.
The Citizens' rejected offer was allegedly worth around £73.4m plus £8.6m in bonuses, but West Ham are holding out for a figure closer to £95m without bonuses.
However, according to Sky Sports News, Man City are yet to submit a formal offer to the Hammers for Paqueta and negotiations between the two clubs are currently on hold.
The report adds that there is a 90% chance that Paqueta's proposed transfer to the Etihad Stadium will be called off, but the situation could change with agents not giving up on their attempts to make deal happen.
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West Ham are keen to keep hold of Paqueta and are under no financial pressure to sell the Brazilian this summer having already received £105m from the sale of midfielder Declan Rice to Arsenal.
Paqueta allegedly has an £85m release clause in his contract but it cannot be activated until the summer of 2024, hence why West Ham are said to be demanding a figure in excess of that valuation this summer.
The midfielder played for over 90 minutes in the Hammers' 1-1 draw with Bournemouth on the opening Premier League weekend and he could be involved in their first home match of the new season against Chelsea on Sunday.
West Ham are understood to have identified Ajax's versatile attacker Mohammed Kudus as a potential replacement for Paqueta and technical director Tim Steidten is currently in the Netherlands holding talks with the Eredivisie giants over a proposed transfer.
However, it remains to be seen if the Hammers – who have already signed midfield duo Edson Alvarez and James Ward-Prowse this summer – will accelerate their pursuit of the Ghana international if Paqueta stays at the London Stadium.
West Ham have also been credited with an interest in Man City attacker Cole Palmer, and Guardiola has admitted that he is unsure whether the 21-year-old will remain at the Etihad this summer.
