Manchester City have reportedly agreed to send England international Kyle Walker on loan to AC Milan for the remainder of the 2024-25 season. The two clubs are now in negotiations over a potential buy option to make the move permanent at a later date.

Milan have been pursuing Walker for much of the January transfer window, ramping up their interest after failing to secure a deal for Manchester United's Marcus Rashford. Due to registration rules limiting them to just one English player this month, Milan shifted focus to the City defender.

Walker, who is under contract with Manchester City until the summer of 2026, expressed his desire to leave the club in recent weeks in order to experience playing abroad before the end of his career.

Reports from Italy indicate that City have agreed to send the 34-year-old out on loan for free. However, with the defender still tied to the club until 2026, Milan must reach an agreement for a potential permanent move.

The Italian club has reportedly struck a deal in principle with Walker for a contract running until the end of the 2026-27 season, but negotiations are ongoing regarding a buy option to be included in the loan agreement.

Meanwhile, Barcelona’s interest in Manchester United forward Marcus Rashford has cooled, according to club director Deco. Despite being one of the clubs linked with the 27-year-old, Barcelona is currently prioritising contract renewals and addressing Financial Fair Play (FFP) concerns.

Rashford, whose contract with United runs until 2028, is reportedly interested in a move to Barcelona. His representatives recently met with club officials in Lisbon before their Champions League clash with Benfica.

However, Barcelona's financial constraints and squad depth have tempered their pursuit of the England international.

Deco confirmed that Barcelona's focus remains on renewing key contracts and securing potential reinforcements later. He also mentioned that FFP issues remain a significant factor in any potential move for Rashford.

As of now, Barcelona may look to sign Rashford on loan, but only if they can avoid breaching FFP regulations. United, however, would likely need to cover a substantial portion of Rashford’s salary to facilitate a move. Rashford last appeared for Manchester United in mid-December in the 2-1 victory against FC Viktoria Plzeň.