Manchester City have pulled out of the race to sign West Ham midfielder, Declan Rice, after Arsenal submitted a third bid worth £105 million.

City had a £90 million offer rejected by West Ham on Tuesday after the Premier League champions bid £80m up front, plus £10 million in add-ons for the England midfielder.

But Pep Guardiola’s side have decided to not match or surpass Arsenal’s £105 million bid for Rice with the Gunners offering a £100 million initial fee, plus £5 million in performance-related add-ons.

READ ALSO: Transfer: Arsenal submit record-breaking £105m bid for Declan Rice

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.

The Star