Manchester City and Real Madrid have reportedly been put on alert as contract negotiations between Alphonso Davies and Bayern Munich have hit an impasse, as per Sky Sport Deutschland's Florian Plettenberg.

The 23-year-old defender's current deal runs until 2025, but Bayern's offer falls short of Davies' expectations, seeking a salary between €10 and €13 million per season.

Real Madrid has expressed serious interest in acquiring Davies and has initiated contact with his agents to explore the possibility of a deal.

The Canadian captain, who has contributed to five Bundesliga titles, including the 2020 treble, desires compensation on par with the club's top earners.

However, Bayern remains uncertain about elevating his pay to that level.

Manchester City, who have previously shown interest in Davies, are likely to monitor the situation closely as the contract negotiations unfold.