Transfer talk: Milan, Juve in talks for City's Balotelli?

Manchester City's volatile striker Mario Balotelli could soon be on his way back to his native Italy with sources familiar with the talks saying AC Milan and Juventus are interested in a deal.

- City bosses order Mancini to get rid of 'menace' Balotelli

The English champions have been talking to the Serie A clubs in the past 24 hours with Milan widely reported to have offered around 20 million euros ($26.92 million, 㾽.15 million) plus add-ons for the 22-year-old but this has fallen short of City's price tag.

City have not been actively trying to sell Balotelli, who has never been far from the headlines with a series of on and off-field antics, but if he were to leave the club in this month's transfer window it would not be on a loan deal.

Balotelli joined City from Inter Milan in 2010 for around 22 million euros and has had a sometimes troubled time at the club, including clashes with manager and compatriot Roberto Mancini and disciplinary issues.

Germany and Schalke 04 midfielder Lewis Holtby will join Tottenham Hotspur in the January transfer window having initially agreed earlier this month that he would move in July.

"We are delighted to announce that we have reached agreement with Schalke for the immediate transfer of Lewis Holtby," the Premier League club said on their website (www.tottenhamhotspur.com) on Monday.

Holtby, 22, was due to be out of contract at Schalke at the end of the season.

The versatile midfielder, who has three Germany caps, joined Schalke in 2009 from Alemannia Aachen and was loaned out to Bochum and Mainz prior to making his breakthrough with the Gelsenkirchen-based club.

Holtby, who captained the Germany Under-21 side but whose father is English, has made 160 appearances in his career and scored 29 goals.

His early arrival will boost Spurs boss Andre Villas-Boas after losing Brazilian midfielder Sandro to a knee injury for the rest of the season.

The north London side, dumped out of the FA Cup fourth round on Sunday at second tier Leeds United, are fourth in the Premier League as they eye England's fourth and final Champions League berth.

Schalke, sixth in the Bundesliga, face Turkey's Galatasaray in the Champions League last 16 in February and March.

Everton have agreed to sign Netherlands midfielder Leroy Fer from Dutch title chasers Twente Enschede, the English Premier League club said on Monday.

The two teams had settled on a fee but the 23-year-old had still to discuss personal terms and undergo a medical, Everton announced on their website (www.evertonfc.com).

Fer, who began his career at Feyenoord, has made two full appearances for his country.

Everton, fifth in the table, entertain eighth-placed West Bromwich Albion in the league on Wednesday.

Twente are second in the Dutch top flight, one point behind PSV Eindhoven.