Paper Talk: David Villa to Chelsea, Mario Balotelli to Arsenal and all the rest of Friday's transfer news and rumours

David Villa heads Chelsea 's list of January transfer targets as the Blues launch their appeal against their two-transfer window ban. The London club are confident the European Court of Arbitration will overturn FIFA's decision, whereupon Carlo Ancelotti intends to stage raids for the Valencia hitman whose side are not in the Champions League this season. The Blues boss is also running the rule over Italy midfielder Daniele De Rossi , of Roma, and Middlesbrough winger Adam Johnson. (The Times)

Fresh from declarations during the club's AGM that the Gunners would persevere with their long-term ploy of investing in young players, Arsenal have been linked with Inter Milan forward Mario Balotelli . The £20m-rated 19-year-old has long been coveted by Arsene Wenger, who is also keen on on Ajax 's 21-year-old defender Gregory van der Wiel . (The Sun)

Birmingham manager Alex McLeish admitted yesterday that even with the £40m made available by new owner Carson Yeung, Wolfsburg targets Grafite and Edin Dzeko are "out of our league". So Big 'Eck has gone back to the drawing board and decided to make a move for the lesser known Theo Lewis . The striker is 18 years old, plays for Cheltenham and is so highly thought of Aston Villa are also trying to lure him to Birmingham. (Daily Express)

Big-spending Manchester City have no such need to play the long game in the transfer market, but, according to Mark Hughes, they do need to hold on to what they've got. Which, presumably, is why the Welshman won't let Robinho leave for Barcelona AND why he is striving to tie Bulgarian midfielder Martin Petrov , who will be out of contract in the summer, to a new deal at Eastlands. (Daily Star)

Liverpool fans' group Spirit of Shankly is drumming up support after hearing unpopular American owner Tom Hicks and George Gillett will be attending their crunch game against Manchester United on Sunday. The Reds are on a run of four straight defeats amid continuing unrest regarding the club's future. (Daily Mail)

Liverpool goalkeeper Pepe Reina has been assured by referees' chief Keith Hackett that security staff at Anfield are on red alert to deal with any balloons and beach balls. (Daily Mail)

England have tried to revive their bid to host the 2018 World Cup by including Germany captain Michael Ballack on the list of ambassadors. But there are NO players from England's 1966 World Cup winning squad involved. (Daily Express)

Sven-Goran Eriksson 's former assistant Hans Backe is favourite to replace Ian McParland as manager of Notts County . (Daily Mail).

Have you heard any juicy transfer gossip. Then why not let us know by logging in here and telling all.

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