Manchester City have pulled out of the race to sign West Ham midfielder Declan Rice after Arsenal submitted a third bid worth £105m.
City had a £90m offer rejected by West Ham on Tuesday after the Premier League champions bid £80m up front, plus £10m in add-ons for the England midfielder
But Pep Guardiola's side have decided to not match or surpass Arsenal's £105m bid for Rice with the Gunners offering a £100m initial fee, plus £5m in performance-related add-ons.
In pulling out of the race to sign Rice, City are following their strategy of not paying more than their own valuation on players, even if it means losing them to a Premier League rival.
Examples include Harry Maguire when he went to Manchester United, and when Jorginho and Marc Cucarella both joined Chelsea - all of whom they wanted to sign but felt comfortable walking away when the price got too high.
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