Latest reports suggest that Premier League duo Manchester City and Chelsea are set to battle head-to-head for the prized signature of the Valencia hotshot David Villa.

Valencia are reportedly immersed in millions of debt and shall need to sell a number of stars in January and then in the summer to gather the required amount.

This news has been denied by the Valencia board but a Goal.com report states that Premier League sides Chelsea and Manchester City have been make alerted. This implies that come January Valencia would have a hard time in staving off both Man City and Chelsea.

Valencia though did play toughball in the summer and rejected a -€50 million bid from fellow Spanish club Real Madrid. Villa himself is said to be glad to play on at the Mestalla and seemingly is not interested in making a move.

But -€50 million is a huge sum of money and although Valencia appear to be quite stubborn about their no-sell-any-player stance, things could alter if reports that Los Che are deep in financial crisis are indeed true.