NOT PROGRESSING: Arsene Wenger says talks with Bacary Sagna have reached a sticking point [GETTY]

The right-back is out of contract at the end of the season wants to stay in the Premier League, with Manchester City now favourites to beat rivals United to the France international's signature.

The North Londoners are understood to have offered Sagna, 31, a two-year extension of his current contract, worth £75,000 - a rise of £15,000 on his current pay.

But Sagna is known to want a bigger paying deal that spans three years, with Wenger revealing today talks had failed to progress further.

"At the moment they [talks] are not progressing," Wenger said.

We know what we want from him, he knows what is on the table and that is where we are.

"The ball is not in our camp anymore, it is in his camp, and he needs to come back to us."

City are now ready to step in this summer with a package worth £20m over three years.

Sagna joined Arsenal in 2007 from French outfit Auxerre.