Transfer rumours and paper review – Monday, January 5

Here's the top transfer-related stories in Monday’s newspapers...

Chelsea and Manchester United have been told they will have to pay £20m if they want to sign Real Madrid defender Raphael Varane, 21. (Daily Express) 

Liverpool are set to pay Lille £3m to bring striker Divock Origi back to Anfield this month. The 19-year-old Belgium international is currently on a season-long loan at the French club from Brendan Rodgers's side. (Liverpool Echo) 

Manchester City manager Manuel Pellegrini wants to sign Schalke midfielder Julian Draxler, although the German side want £25m for the 21-year-old. (Daily Star) 

Liverpool midfielder Steven Gerrard, 34, has turned down an offer worth £18m to play in Qatar when he leaves the Reds at the end of the season. (The Sun)

Barcelona midfielder Sergio Busquets, 26, is set to disappoint Arsenal, Chelsea and Manchester United by signing a new deal with the Spanish side. (Daily Star) 

Tottenham are prepared to sell goalkeeper Hugo Lloris, 28, for £25m. (The Sun)

Liverpool will make a £23m bid for 21-year-old West Brom striker Saido Berahino — once they can sell unwanted Fabio Borini, 23. (The Sun)

However, new West Brom manager Tony Pulis insists he is under no pressure to sell Berahino, even though by doing so he could double his transfer budget. (Daily Telegraph) 

Crystal Palace are ready to hijack QPR's bid to sign West Ham forward Mauro Zarate, 27, on loan following the appointment of manager Alan Pardew. (Daily Mirror) 

Cardiff City will not sign Chelsea forward Islam Feruz on loan. The 19-year-old had been scheduled to talk to Bluebirds boss Russell Slade on Monday. (Wales Online) 

Former England boss Glenn Hoddle is a candidate for the vacant manager's job at Newcastle United. (Newcastle Chronicle) 

Paris St-Germain have not given up the idea of recruiting Barcelona forward Lionel Messi and could be willing to pay a record sum of £164m for the 27-year-old. (L'Equipe)

Manchester City are keen to sign Schalke midfielder Julian Draxler, 21, and could be willing to trade defender Matija Nastasic, 21. (Bild)

Cristiano Ronaldo's agent Jorge Mendes has said dismissed the possibility of the 29-year-old Real Madrid striker playing for Paris St-Germain, saying it is "impossible". (Le Figaro)