EXCLUSIVE
West Ham are encouraging Arsenal to make a third bid for Declan Rice to bring a speedy end to the saga, talkSPORT understands.
Manchester City have held talks with the Hammers, but are yet to make a formal offer after being told Rice prefers a move to north London.
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Arsenal have had two bids rejected with the east London outfit holding out for a guaranteed £100million and the bulk of the money paid up front.
West Ham chairman David Sullivan told talkSPORT earlier this month that Rice will be allowed to leave this summer after leading the club to Europa Conference League glory.
The latest offer from Mikel Arteta's side was turned down on Tuesday, which saw Arsenal bid £75m plus £15m in add-ons.
That was a club-record offer form the north Londoners, with Nicolas Pepe's £72m transfer from Lille in 2019 their current biggest ever signing.
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It was expected that City would turn their interest into a formal bid for the 24-year-old after learning that club captain Ilkay Gundogan would join Barcelona on a free transfer.
But talkSPORT told you how Arsenal remain the player's preferred destination, with the club hopeful of reaching an agreement with West Ham.
The England international has a young family and has favoured remaining in London instead of elsewhere.
The news that Rice is leaning towards a switch to the Emirates will be a blow for City winger Jack Grealish, who has liked posts on Twitter about a possible link-up with his Three Lions teammate at the Etihad.
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talkSPORT pundit Danny Murphy declared earlier in the week how Rice may have to go on strike in order to leave the London Stadium.
He said: "It may get to a point where Declan has got a decision to make - has he got the courage to kick up to get out if he needs to?
"I know he's not that type of lad but sometimes you have to be Craig Bellamy, Joey Barton - you've got to look after yourself.
"I only had it once in my career, but you have to be able to follow through.
"It means you have to make it perfectly clear, 'If you keep me here I won't be playing', and even if you don't really believe it long-term, you have to do it and make them believe.
"Is it a professional thing to do? It doesn't matter. You've got to look after yourself.
"The big question mark for Dec is if Man City do come in late, the choice over whether to leave London or not.
"London is his home, it's where he's grown up, it's where his family is, but as a football decision it would be a no-brainer to join the Premier League champions.
"If you had a choice between City and Arsenal, although Arsenal are on a great trajectory, you'd pick City all day long."