Everton are expected to hold further talks with midfielder Gareth Barry this week over a permanent deal at Goodison Park.
Manchester City have expanded their global portfolio by buying a a minority stake in Japanese J-League club Yokohama F Marinos.
Manchester City insist UEFA sanctions limiting spending on transfers next season will not have a major impact on their campaign.
Premier League champions Manchester City have kicked off their summer recruitment with the signing of Arsenal right-back Bacary Sagna.
The 31-year-old, currently at the World Cup with France, has agreed a three-year deal having rejected an improved contract from the Gunners.
Sagna will officially join City on his return from Brazil and has been given the vacant number three shirt, which he also wore for Arsenal.
Despite the circumstances of his departure the Gunners sent their best wishes to the player, who made 284 appearances for the club after signing from Auxerre in the summer of 2007.
"Bacary Sagna has agreed to join Manchester City after his contract with Arsenal expires on June 30," said an Arsenal statement.
"An integral part of Arsenal's defence over the past seven seasons, the France international brought his time with the Gunners to a fitting close last month when he helped the team win the FA Cup in his final match.
"Everyone at Arsenal Football Club would like to thank Bacary for his fantastic contribution, and wish him all the best for the future."
Sagna will contest the right-back slot with established first-choice Pablo Zabaleta, widely considered to be the most consistent Premier League performer in that position for the last two years, and the Frenchman's arrival almost certainly signals the end of Micah Richards' career at the club.
City now have considerable strength in the full-back positions with Zabaleta and Sagna on the right and Gael Clichy and Aleksandar Kolarov, who signed a new three-year contract on Thursday, on the left.
Manager Manuel Pellegrini is still trying to bring in reinforcements for the centre of defence with Porto's Eliaquim Mangala, as well as the Portuguese side's defensive midfielder Fernando, targets.
Manchester City confirm the signing of French defender Bacary Sagna on a free transfer from Arsenal. He's signed a three year contract.
New York City FC have announced the signing of Spain international David Villa on a three-year deal.
The newly-formed Major League Soccer club, who are jointly owned by Manchester City and the New York Yankees, confirmed on their Twitter account that the 32-year-old was their first-ever player.
The club tweeted: "Welcome to New York City: David Villa (@Guaje7Villa) officially signs as #NYCFC's first ever player. #VillatoNYCFC."
Yaya Toure is not motivated by money but instead by the pursuit of a long-term technical role at Manchester City, according to his agent.
The Ivory Coast international seemed to express unhappiness on Twitter after his agent Dimitry Seluk publicly claimed his client felt under-appreciated and disrespected at City. Seluk suggested that one of Toure's main gripes was the club's failure to mark his 31st birthday last week.
But in an interview with Sky Sports News broadcast on Thursday morning the Ukrainian claimed Toure would be more than happy to stay should he be promised a coaching position or sporting director's role beyond his retirement.
Seluk said: "Of course. Like Real Madrid did with (Zinedine) Zidane for example. Zidane played then after that he started working for the club. Yaya needs the club in the future.
We don't want any more pounds, not a longer contract, nothing like this, only really attention. More attention (paid) to Yaya and Yaya must feel happy at the club - that's the main thing. I'll tell you one more time, we don't need one more pound in the contract."
Yaya Toure has caused confusion over his future at Manchester City, by first dismissing reports he might leave the club, but then endorsing the comments made by his agent.
Earlier, Toure brushed off claims he might leave the Etihad because the club "didn't care" about him.
The midfielder made a joke about the club not acknowledging his birthday, and said to fans: "judge my commitment... by my performances".
Toure then, however, tweeted support for the statements his agent made, including there being a "big possibility" he could leave the club.
My agent was trying to make a point here on my behalf, joke aside.It seems important for me to make a statement..i am going to do so.
Everything dimitry said is true . He speaks for me . I will give an interview after world cup to explain
Yaya Toure has responded to claims he wants to leave Manchester City.
The midfielder tweeted a joke about a birthday card from the club getting "lost in the post", after claims from his agent that City "don't care" about the player.
Thanks for all the birthday messages today. Card from City just arrived... Must have got lost in the post. Haha
Jokes aside. Please do not take words that do not come out of MY mouth seriously. Judge my commitment to @mcfc by my performances.
Yaya Toure's agent claims the midfielder may leave Barclays Premier League champions Manchester City this summer.
Dimitry Seluk claims City have not made Toure feel valued and appreciated, especially on his 31st birthday which clashed with a party in Abu Dhabi to celebrate City's title win.
Seluk told The Sun: "There's a big possibility Yaya will leave this summer.
"What happened at his birthday meant the club don't care about him. It was proof.
"In a normal team, his team-mates and club would at least give him good wishes.
"He's very upset and he started thinking of leaving the club. And he will leave if things carry on like this.
"It's not a question of money or contract, believe me. He has everything he needs. For Yaya what is the most important thing is human relationships.
"When your best worker has his birthday from time to time it's not bad to shake his hand. To make him feel valued and appreciated. They don't give any attention to Yaya.
"Toure signed a new four-year deal with City last season.
Manchester City says it has decided to enter into a compromise agreement with UEFA over a breach of financial fair play rules.
It comes after the club was fined £49million and handed a reduction in their Champions League squad for next season from 25 to 21 players.
The club said expenditure on new players for the upcoming summer transfer window, on top of income from players it might sell, will be limited to 60million euros but that this will have no material impact on planned transfer activity.
– Manchester City statement
"The wage bill of the whole club (playing and non-playing staff) for 2014-15 will need to remain at the same level as that of 2013-14 season.
"It is important to note that additional bonuses for performances can be paid outside this number. Importantly, in reality, the existing MCFC business plan sees a natural decline in that wage bill.
"The nature of conditions that will result in the lifting of sanctions means that the club expects to be operating without sanction or restriction at the commencement of the 2015-16 season."