Transfer Talk: Atletico Madrid give up on Costa as City give Everton ultimatum over Stones

From done deals to paper talk, we bring you the best of the day's transfer news

Manchester City have reportedly told Everton they will not budge on their £40 million offer for John Stones despite the fact that the Toffees value the player at £50 million.

Pep Guardiola admitted recently that he was a fan of the centre back saying, "everyone knows we are going to try" in relation to a possible swoop for the 22-year-old.

He was linked with a move to Chelsea last season but nothing materialised and it remains to be seen whether Everton, under the new management of Ronald Koeman, are interested in cashing in on the player who struggled last season after his head was turned by Jose Mourinho.

Atletico Madrid's president Enrique Cerezo recently said that his club were interested in bringing Diego Costa back to the Vicente Calderon and said that a deal was close. However, Kevin Gameiro looks like he could be edging towards a deal that would bring him to the capital of Spain and with Chelsea remaining resolute in their unwillingness to negotiate with Atletico over Costa, this speculation could be set to end with the Spanish striker remaining in London.

Meanwhile, the Daily Mail report that Everton have rejected a bid worth £57 million for Romelu Lukaku and will not budge on their £75 million valuation of the player.

Sir Alex Ferguson has given Jose Mourinho the go-ahead to resign Paul Pogba while Mina Raiola, the player's agent, seems less convinced that a deal is close to agreement.