Both Manchester clubs are itching to spend the money they got from the grandparents at Christmas.
Pep Guardiola was gifted a £60million voucher to be redeemed at Southampton in exchange for a Dutch centre-back.
Man City are keen to strengthen in defence with Virgil van Dijk their number one target.
The Saints centre-back has long been linked to a move to Liverpool but the Telegraph claim the league leaders are closing in on a deal for the 26-year-old.
Vincent Kompany’s injury troubles and Eliaquim Mangala’s failure to impress has left Guardiola searching for competition for John Stones and the much-improved Nicolas Otamendi.
The report suggests City want to recruit Van Dijk in January to ensure their title charge continues without issue.
Van Dijk’s physicality and ball-playing inclinations make him a good fit for a Guardiola defence.
Meanwhile, Jose Mourinho is planning a £60m transfer of his own.
The Daily Star are reporting that Man United are monitoring the progress of Paulo Dybala, with a view to making an offer for the Argentine forward in the summer.
Juventus’ No10 started the season in red hot form but has since been overtaken by Ciro Immobile and Mauro Icardi in Serie A’s goalscoring charts.
Dybala has scored 12 league goals so far this season and continues to impress in Turin since joining Juve from Palermo to the tune of £30m in 2015.
Fans remember his chemistry with Paul Pogba fondly though his friendship with the Frenchman represents a significant bargaining chip for United.
Javier Ribalta, United’s head scout formerly of Juventus, is likely to have encouraged the club’s interest in the player.
Dybala’s creativity and technique means he’s capable of playing as an attacking midfielder as well as a centre-forward or second striker.
A deal in January is unlikely with Mourinho already looking forward to next season.