City’s offer comprises of a guaranteed £80million plus an extra £10m in add-ons.
The proposal beats Arsenal’s previous rejected bid of a guaranteed £75million plus an additional £15million in bonuses.
It remains to be seen if City’s offer is accepted by West Ham, but the bid will focus Arsenal’s efforts to sign Rice, who is Mikel Arteta’s No 1 target.
Pertinently, West Ham value Rice at £100million, a price City have fallen short of.
And indications on Monday night were that West Ham were minded to reject City’s offer.
Sources claim that Arsenal’s third offer will be closer towards the Hammers’ £100m valuation.
The payment structure is also emerging as a factor, with the Hammers wanting the guaranteed portion of the fee for Rice to be paid in two instalments before 2025.
Rice has been heavily linked with Arsenal since before the transfer window opened but a deal has yet to be struck.