MANCHESTER City last night denied that they were lining up a multi-million pound bid for Sunderland left-back Julio Arca.

The Argentinian international is currently embroiled in contract discussions with the Black Cats and, with his current deal due to expire at the end of next season, a number of clubs are monitoring those talks.

City boss Kevin Keegan is a known admirer of the 23-year-old and spoke yesterday of his desire to sign three more players before the start of the new Premiership campaign, one of which he hoped would be a "left-sided player".

Sources in Manchester have suggested that player is Arca, but City officials have dismissed talk of an imminent approach.

A club spokesman said: "The club has not made an approach for, or expressed an interest in, Julio Arca. This story surfaced previously in the summer but there is nothing in it."

With Arca free to start talking to other clubs in January, Sunderland face some difficult decisions if they are unable to persuade him to sign a new deal this month.

Boss Mick McCarthy is keen to retain his services as he looks to plot a course out of the Coca-Cola League, but chairman Bob Murray is reluctant to let his prize asset leave for free next summer.

Scottish champions Celtic are also understood to be watching the situation with interest and, while McCarthy is confident that Arca will sign a new deal, he will not allow the situation to overshadow the start of the new campaign.

The versatile left footer hobbled out of Sunday's 3-1 win over Doncaster with a thigh injury and faces a race against time to be fit for Saturday's Championship opener at Coventry.

Sunderland have been involved in a number of contract discussions this summer, and midfielder John Oster has admitted that he came close to leaving.

The Wales international was close to joining West Ham before Alan Pardew's side lost the First Division play-off final but, after signing a new two-year deal, the midfielder has set his sights on reaching the top-flight with the Black Cats.

"The manager has brought some new players in and I want to get back to the Premiership with Sunderland," said Oster, who was yesterday named in the Wales squad for August 18th's friendly with Latvia along with team-mate Carl Robinson.

"I want to play at the highest level and I've signed a contract here for the next two seasons."

l Goalkeeper Mart Poom is in line for his 99th cap after being named in the Estonia squad for their World Cup qualifier against Liechtenstein on Aug 18. Jeff Whitley and George McCartney have been named in the Northern Ireland squad that will face Switzerland in a friendly on the same day.

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