Manchester City have told Monaco they will not loan out striker Nicolas Anelka and warned the French club that they will have to pay £10m if they want to buy him.

Last season’s Champions League finalists are keen to set up a loan deal for Anelka, but the Premier League club are only interested in a permanent deal.

Monaco sporting director Henri Biancheri said: “We believe it’s Nicolas’ wish to come to Monaco.

“The problem is that we can only organise a loan and Manchester City would want a permanent transfer.”

City manager Kevin Keegan is reluctant to weaken a teamm which last season narrowly avoided relegation.

Biancheri added: “Nicolas wants to play in a team that will be challenging for the title and he will have a chance of being in the France national team.”