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The Hammers believe new offer for £100m midfielder is imminent with the Gunners aware of rival bid from the Premier League champions
West Ham believe Arsenal's third offer for their captain Declan Rice is imminent amid hope the transfer saga is reaching its conclusion.
On Friday afternoon, the Hammers were still waiting on the Gunners' improved official offer after their most recent bid worth £90 million was rejected.
But it is understood that West Ham are aware of Arsenal's intention to bid again for Rice, who is valued at a minimum £100 million by Hammers chairman David Sullivan.
There is an understanding at Arsenal that their next bid will have to be much closer to West Ham's valuation.
News of Manchester City's intention to formally table an offer for the 24-year-old, has sharpened the focus for the Gunners to get a deal for their No 1 target over the line as soon as possible.
The Hammers have been expecting an official offer from City for Rice following the decision of Ilkay Gundogan to leave the Etihad this summer ahead of joining Barcelona on a free transfer.
So far, there has been no confirmation of a formal offer from City, though the Hammers have actively been made aware of the Treble winners' interest in their captain.
Nevertheless, while Arsenal believe they remain in pole position to sign Rice, the spending power City have at their disposal would provide the Gunners with an unwanted problem if the Premier League champions decide to bid.
Arsenal have already committed up to £70 million to sign Kai Havertz from Chelsea this summer.
Havertz is expected to undergo a medical over the weekend ahead of completing his move across London. The Germany international will earn a minimum £210,000-per-week at the Emirates.
Arsenal are also trying to sign Jurrien Timber from Ajax, while Southampton's Romeo Lavia is of interest to the Gunners.
They are also focused on trying to rebalance their squad with a number of departures.
Thomas Partey and Granit Xhaka, who were both recognised as the club's first choice central midfielders last season are set to leave.
A number of clubs in Italy and Saudi Arabia are interested in Ghana star Partey, while Xhaka is expected to join Bayer Leverkusen once Rice arrives. The futures of Rob Holding and Kieran Tierney are also unclear.
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