Chelsea are set to sign Portugal midfielder Tiago from Benfica, as Hernan Crespo goes out on loan to AC Milan.

The fee for the 23-year-old is said to be around £6.5m according to the Daily Mail.

Chelsea chief executive Peter Kenyon told the paper: "An agreement could come over the next few hours.

"We've talked a lot over the past few days and the process has taken a positive turn."

Meanwhile Crespo - whose loan to Italy makes Didier Drogba's move to Stamford Bridge more likely - says AC coach Carlo Ancelotti was his main reason for the loan.

He told the Sun: "Ancelotti is one of the reasons I chose to return to Italy. I am happy to find him back as my coach."

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Alan Shearer has denied reports he would quit Newcastle if he wasn't playing regularly.

He had been reported as making an ultimatum to Newcastle saying he would rather walk out than sit on the bench.

But Shearer, on a pre-season trip to Hong Kong, told the Sun: "I did not say I would quit. What I did say is I wanted to play regular football in my final season at the club.

"I would never stop the development of Newcastle United Football Club. That's far more important than any player."

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The annual Patrick Vieira transfer saga continues, with the Daily Mail and Sun claiming Arsenal held an emergency board meeting after the midfielder told them he wants to leave.

And the Highbury club have also been linked with Real Madrid's Fernando Morientes - as a makeweight for Vieira, says the Daily Mirror.

However the Telegraph reports the Arsenal board have stayed silent over the matter, but says a deal could be done for Morientes.

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Charlton have asked the Premier League to intervene in their row with Chelsea over Carlton Cole.

Cole was supposed to spend the season on loan at Charlton as part of the agreement that saw Scott Parker move to Chelsea.

But Cole has agreed a season-long loan at Aston Villa, which has angered Charlton chief executive Peter Varney, who put a statement on the club's website, reported in this morning's papers.

It read: "We were given a categorical assurance on July 6 by Peter Kenyon that Carlton Cole would not be loaned to another Premiership club following his decision not to return to Charlton.

"It is very regrettable that we are now forced to involve the FA Premier League and lawyers to confirm the conditions of the contract we signed with Chelsea back in January 2004."

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Manchester United are considering sending midfielder Nicky Butt on loan after receiving no offers to buy the player, according to the Times.

Butt was told in December that he could leave the club, but since turned down a move to Birmingham.

The Times report the stumbling block to selling Butt could be the club's £4m valuation of the player.