"The club feel..." - Journalist reveals why Man City are refusing to match Arsenal's bid for Declan Rice

A journalist has explained why Manchester City have pulled out of the race to sign West Ham’s Declan Rice.

The Daily Mail reported on Wednesday morning that Arsenal’s £105million for Rice has seen City pull out of the race to sign the 41-cap England international

Earlier this month City had matched Arsenal’s £90million proposal for Rice, offering an increased sum up-front, only for both bids to be rejected.

However, Arsenal have since returned with a bid worth an initial £100million plus an extra £5million in add-ons.

The Gunners are now in negotiations with West Ham over a payment structure. However, the north London side’s move has prompted City to step aside from a potential deal.

Arsenal upped their bid to secure manager Mikel Arteta’s top target. Should the move materialise it would be a Premier League record fee for a British fee.

Why Manchester City pulled out of Rice race

According to Mail Sport's Mike Keegan, City are “relaxed” about the Rice situation.

The journalist claimed that City feel that Arsenal are bidding over their valuation of the player.

Keegan tweeted: “Manchester City are relaxed about the Declan Rice situation following their withdrawal.

“Club feel they’ve been in this position before - where they’ve refused to go higher than they think a player is worth - and believe their judgement has proved to be sound.”

City reportedly pulled out of deals in the past for the likes of Fred, Harry Maguire and Alexis Sanchez.

Rice will leave West Ham in the close season, having captained the club to their first European trophy in 58 years.

Hammers chairman David Sullivan admitted a gentleman's agreement means Rice can leave the east London outfit despite a year remaining on his contract, with the option to extend it by a further 12 months.