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Manchester City could turn to Atletico Madrid defender Martin Demichelis after growing frustrated in pursuit of Real Madrid’s Pepe.

Argentine Demichelis only joined Atletico this summer as a free agent after leaving Malaga, where he worked under Manuel Pellegrini.

He is prepared to ask Atletico to cancel his contract but the likelihood is they will ask a nominal fee to cover their losses.

Technically he is still eligible to move to City after his contract with Malaga expired last season meaning he has only had a contract registered with one club so far this season.

City are willing to offer the 32-year-old a two-year contract if the clubs can agree a deal. Another alternative for City is Demichelis’s clubmate Joao Miranda, 28. Atletico Madrid striker Diego Costa, a Liverpool target, has signed a three-year contract extension.

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