Transfer Talk Daily Update: Julian Draxler, Diego Costa, Dele Alli

With all eyes fixed on the January transfer market, clubs around the UK and Europe are already lining up potential mid-season moves.

Tuesday morning's headlines:

Craig Shakespeare confident over new deal for Demarai Gray
Craig Shakespeare expects terms to be agreed with Leicester City winger Demarai Gray over a new contract "sooner rather than later". Read more.

Mauricio Pochettino plays down Dele Alli contract rumours
Mauricio Pochettino suggests that discussions over a new contract for Dele Alli are not ongoing, contrary to reports in the British press at the weekend. Read more.

Karim Benzema to sign new Real Madrid contract on Thursday?
A report claims that Real Madrid and Karim Benzema have come to an agreement over a new four-year deal at the Bernabeu, with an announcement to be made on Thursday. Read more.

Report: Ander Herrera to sign new Manchester United deal
A report claims that Spanish midfielder Ander Herrera is to reject interest from Barcelona to extend his career at Manchester United. Read more.

Alfredo Morelos 'attracting Championship interest'
Rangers forward Alfredo Morelos is a transfer target for five Championship clubs, according to a report. Read more.

Guillem Balague: 'Robert Lewandowki wants Real Madrid'
Spanish journalist Guillem Balague says that Bayern Munich forward Robert Lewandowski "will try everything he can" in order to force a move to Real Madrid next summer. Read more.

Liverpool 'eye Fiorentina's Federico Chiesa'
Liverpool reportedly consider an approach for Fiorentina forward Federico Chiesa, who has scored once in three Serie A appearances this season. Read more.

Eden Hazard rules out Paris Saint-Germain move
Chelsea attacker Eden Hazard rules out a move to Paris Saint-Germain, insisting that he would only return to French football for former club Lille. Read more.

Real Madrid players 'don't want Alexis Sanchez at Bernabeu'
Arsenal ace Alexis Sanchez is no longer on Real Madrid's transfer radar as the playing squad do not want the former Barcelona forward in their ranks, a report claims. Read more.

Arsenal to return for midfielder Julian Draxler in January?
Paris Saint-Germain hope to offload Arsenal-linked attacking midfielder Julian Draxler in the January transfer window, according to a report. Read more.

Report: Atletico Madrid make final offer for Diego Costa
A report claims that Chelsea have been informed by Atletico Madrid that their bid of £58m for Diego Costa is the last offer they will table for the Spain international. Read more.

Manchester United 'monitoring Radja Nainggolan, Saul Niguez'
A report claims that Radja Nainggolan is still wanted by Manchester United, while Atletico Madrid ace Saul Niguez has also emerged as a potential target. Read more.