Daily Transfer Updates: January 27, 2014

Newcastle United have rejected a £14million offer from Paris Saint-Germain for Yohan Cabaye (SkySports). Newcastle United’s valuation of the player is well upwards of £20 million for the midfielder who is also reportedly being chased by Manchester United as well.

Chelsea and Manchester United set to get into a bidding war for Southampton left-back Luke Shaw (Mirror). Both clubs are ready to go above £25 million for the 18-year old defender.

Schalke general manager Horst Heldt rubbished claims Julian Draxler was on his way to the Emirates (Express). “You should ask Mr Wenger, call him,” Heldt said. “There’s no contact with Arsenal or any other club.”

Tottenham want to sign Dutch attacker Ibrahim Afellay on-loan for the rest of the season after Barcelona admitted he can leave the club (Metro). The 27-year-old’s time at the Nou Camp has been difficult due to injury problems but Afellay returned from a 5-month long thigh injury just this month.

Manchester United are reportedly preparing a bid for Porto midfielder Fernando (SportsDirectNews). The 26-year old Brazilian’s contract expires this summer and United are expected to make a move for a reduced fee in the January transfer window.

Chelsea make ‘verbal agreement’ to sign Diego Costa from Atletico Madrid in the summer (Express). Reports in Spain suggest that the Blues have agreed to meet Costa’s £32m buy-out clause in the summer.

Midfielder Michael Essien has completed his move to AC Milan from Chelsea, signing a 17-month deal with the Serie A team (BBC).