Bayern Munich set to beat Chelsea and Man City to signing of Benfica ace

Bayern Munich look to have won the race to sign coveted Benfica left-back Fabio Coentrao by reportedly holding talks with the club over a lucrative long-term contract.

Portuguese newspaper O Jogo claims the German giants are locked in negotiations for the defender, with a transfer fee of £22m said to have been offered - despite a buy-out clause of £26.5m slapped on the player.

Chelsea and Manchester City were reportedly interested in the 23-year-old, as well as a host of top European clubs, including AC Milan - however Bayern look set to tie Coentrao down on a five-year deal. Benfica have yet to comment on the situation.