Arsenal and Chelsea dealt transfer blow as 'agreement reached' for England star

The England star is a free agent after leaving Manchester City upon the expiry of his contract, and his impressive performances at the World Cup put both London clubs on red alert. The north Londoners did the former, but fell at the last hurdle in the latter, losing to Paris Saint-Germain on penalties in Budapest. In demand: John StonesGettyStandard Sport also understands that Chelsea hold an interest in Stones as Xabi Alonso looks to shape his squad in his own image after taking the reins at Stamford Bridge. Stones, 32, is on the Blues’ centre-back shortlist as they look to strenghten their depth at the heart of their defence. Now, however, the two Premier League sides could be set to miss out on Stones altogether, with widespread reports indicating that the former Man City defender is in advanced talks with Inter Milan over a move to the Serie A. David Ornstein reports that the deal is on track to be completed by the end of this week, while Fabrizio Romano has gone one further, reporting that there is an agreement in place for the defender to complete his switch to the San Siro on a two-year deal. Read MoreStones had an injury-hit final campaign at the Etihad Stadium, where he was limited to just 15 appearances in all competitions. In his decade in Manchester, he won six Premier League titles, three FA Cups and three League Cups and the Champions League.