Manchester City make crucial Declan Rice decision after Arsenal's record-breaking £105m bid: Reports

Manchester City have left the race to sign West Ham United captain Declan Rice following Arsenal's £105 million bid for him, according to The Daily Mail journalist Jack Gaughan.

West Ham are resigned to losing Rice this summer after the midfielder rejected multiple offers to become their highest earner of all time. Despite the Englishman's deal ending next year, David Moyes' side have been adamant about bagging a fee in excess of £100 million for him. Their hope of a bidding war raising the amount came true last week.

Arsenal were the first to approach West Ham with a formal offer. After their initial proposal was deemed derisory by the Irons, they returned to the table with an improved bid worth £90 million - £75 million plus £15 million in add-ons.

The offer was then matched by Premier League champions Manchester City, who offered to pay West Ham £80 million plus £10 million in add-ons. However, both those proposals were quickly turned down by the east London outfit.

Determined to get a deal across the line, the Gunners made a third bid worth £105 million for Rice on Tuesday (June 27). They offered to pay the Hammers an initial sum of £100 million plus £5 in add-ons with the hope that it would also fend off competition from Manchester City.

It has now emerged that Pep Guardiola's side have pulled out of the race to sign the midfielder. According to the aforementioned source, they do not intend to submit a second offer for the England international as they seemingly believe the bidding for him has exceeded their valuation.

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Arsenal favorites for Declan Rice after Manchester City pull out, but agreement with West Ham missing

Manchester City's pulling out of the race to sign Declan Rice has increased Arsenal's chances of signing him. However, it's worth noting that the Gunners still do not have an agreement with West Ham. The Irons have not accepted their £105 million offer for their captain.

There have been suggestions that West Ham are not satisfied with the structure of Arsenal's £105 million proposal. Although the deal would make the midfielder the most expensive Englishman in the Premier League, the Hammers want a huge chunk of the fee to be paid quicker than proposed.

According to journalist Sami Mobkel, Rice is prepared to ask West Ham to accept the north London giants' latest offer for him. Mikel Arteta's side, meanwhile, are confident of getting a deal across the line soon. There is a feeling that the clubs could reach an agreement on Wednesday (June 28).