have pulled out of the race to sign captain following Arsenal’s £105m bid for the midfielder.
The Gunners late on Tuesday night.
While the Hammers did not accept the offer, it was not immediately turned down.
Instead, the two clubs of the £105m offer.
City submitted a £90m bid of their own earlier this week, which was rejected immediately.
Pep Guardiola is keen to bolster his midfield following the .
But the club will not match Arsenal’s £105m bid as that has gone beyond a figure they are willing to pay.
on Tuesday and the Croatia international will go some way to replacing Gundogan.
However, City could now enter the race to sign from Brighton.
Should Rice join Arsenal, it will be a personal triumph for Mikel Arteta.
The Spaniard has laid out significant groundwork towards signing Rice and made a personal effort during the course of last season to speak to the midfielder over a role at the Emirates.
City’s financial might and greater guarantee of success threatened Arsenal’s early move but the Gunners are now favourites to sign the England ace.
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