Sergio Agüero tops Real Madrid's January transfer shopping list

• Spanish giants keen to sign Manchester City striker
• Agüero insists he's happy at Etihad after signing new contract

Real Madrid are considering a January bid for Sergio Agüero after the Manchester City striker was identified as the Spanish club's prime target at the start of the summer, ahead of Gareth Bale, who was bought for a world record £85.3m.

Madrid made an inquiry about Agüero – who scored in Saturday's 3-1 win over Everton at the Etihad Stadium – and were told he would not be sold. They had also wanted to sign Neymar, who was then at Santos, and Radamel Falcao, who began the summer at Atlético Madrid, ahead of Bale.

That means the Welshman was effectively Madrid's fourth choice. Falcao signed for Monaco on 20 May before Neymar joined Barcelona a week later, with City announcing on 24 May that Agüero had agreed a one-year extension to his contract, keeping him at the club until 2017.

Madrid retain an interest in Falcao, but Agüero remains their first choice to strengthen the striking options of Carlo Ancelotti, which comprise only Karim Benzema and 20-year-old Alvaro Morata.

While Real may firm up their interest for Agüero in the January transfer window with an offer expected to be markedly more than the £38m he cost the club two years ago, in an interview with the Guardian on Saturday Agüero reiterated his loyalty to City.

"I'm very happy at City, very happy since the day I came," he said. "I knew that the project was good and in my head there is nothing else but Manchester City, so how long I'm going to be at City is just never a question.

"I'm happy here, my family's here when they come to England, all I can do is give everything I have for the club and concentrate on achieving for the club. We are improving every year the team, the club, the club is growing, we are working in the same direction to get the club as high as possible. Some years are better than others, but it's a much better club, a much better team than it was four or five years ago, so we just have to go [continue] in the same way."

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