Arsenal and Man City hit by Morten Hjulmand transfer twist

Arsenal and Manchester City have reportedly fallen behind in the race to sign Sporting CP captain Morten Hjulmand after Atletico Madrid reached a preliminary agreement with the midfielder over a summer move.

The Denmark international has been one of Europe's most sought-after midfielders throughout the transfer window, with Premier League interest remaining strong. However, fresh reports from Portugal suggest Diego Simeone's side have taken a significant step towards completing the transfer.

The focus now shifts to negotiations between Atletico and Sporting.

According to Portuguese newspaper A Bola, Hjulmand has reached an agreement in principle over personal terms with Atletico Madrid.

The Spanish club must now negotiate a transfer fee with Sporting before the deal can be completed.

The report is particularly notable because A Bola only recently dismissed suggestions that Atletico had made progress, insisting no talks had taken place between the player and the La Liga side.

Their latest update therefore points to a significant change behind the scenes.

Despite Atletico's progress with the player, Sporting's position has not altered.

Although Hjulmand's official release clause stands at €80 million, the Portuguese champions are still expected to honour a gentleman's agreement allowing him to leave for between €40 million and €50 million.

If Atletico submit an offer within that range, Sporting are expected to enter serious negotiations.

That asking price continues to make Hjulmand one of the most attractive midfield options available to Europe's biggest clubs.

Both Arsenal and Manchester City have been strongly linked with Hjulmand throughout the summer.

Arsenal were recently described as one of the Dane's preferred Premier League destinations, while Manchester City's interest has been strengthened by sporting director Hugo Viana, who originally brought the midfielder to Sporting.

Premier League club should not be considered out of the race purely because Atletico have reportedly agreed personal terms. A player agreement is only one part of a transfer, and Sporting must still be satisfied with any offer. However, convincing Hjulmand after he has reportedly committed to another project could now prove considerably more difficult.

For now, Atletico appear to have seized the initiative.

Attention will now turn to negotiations between Atletico Madrid and Sporting as both clubs attempt to reach an agreement over the transfer fee. Arsenal and Manchester City could still re-enter the race with improved proposals, but the latest reports suggest Atletico currently hold the strongest position in the battle for one of Europe's most coveted midfielders.

Has Atletico Madrid now done enough to beat Arsenal and Manchester City to Morten Hjulmand?