Manchester City will make an increased bid of £40 million for John Terry, although any transfer is likely to be dependent on the England captain’s willingness to force the issue.

Chelsea suspect that Terry may be using City’s interest as leverage in an effort to secure an improved contract, but if he is serious about leaving Stamford Bridge, the club will insist that the defender submits a transfer request as they are determined not to be painted as the villains in any prospective sale.

City would not have pursued Terry so rigorously had they not been given grounds for encouragement and are refusing to concede defeat despite having a £30 million bid rejected last week.

Terry would stand to earn about £200,000 a week at City — compared with his existing wages of £135,000 a week at Chelsea — and is said to be impressed by the scale of City’s ambitions, although the club must be aware that they could be being used as a bargaining tool.

Chelsea would consider opening talks with Terry, whose present contract has three years left to run, about a new deal, but they will not be held to ransom and know that £40 million is a lot of money for City to offer for a player who turns 29 in December.

The tone of the statement Chelsea released last week, confirming that they had “completely rejected” City’s offer, reflected their frustration, but despite encouraging Terry to reiterate his commitment to the club, the defender has yet to do so.

City lodged an initial bid for Terry in January, despite being warned off by Chelsea before that, but the situation is intriguing not least because it pits the two of the richest owners in world football against each other for the second time in less than a year.

Sheikh Mansour, the City owner and Arab billionaire, won the previous battle of wills in September last year, with Roman Abramovich, his Chelsea counterpart, refusing to match City’s £34.2 million British record bid for Robinho, the Brazil forward.

Mark Hughes, the City manager, has made it clear that he covets Terry over most others and believes that his leadership qualities, along with his defensive nous and goalscoring prowess from set-pieces, will greatly strengthen a rearguard that still has a fragile look.

Reports that Hughes and Terry were on holiday at the same hotel complex in Dubai last week will only add fuel to the heated speculation.

Hughes wants to pair Terry and Joleon Lescott, of Everton, in central defence next season, although the City manager may wait to see how the Terry situation pans out before stepping up his efforts for Lescott. Everton’s £20 million-plus valuation of Terry’s England team-mate may prove a sticking point.

If a second bid for Terry fails, Hughes is likely to turn to Kolo Touré, the Arsenal defender who is out of contract at the Emirates Stadium next summer and who would be available for about £14 million.

City are still awaiting a decision from Samuel Eto’o, the Cameroon striker, who is locked in a dispute with Barcelona.

Manchester United also inquired about Eto’o this summer but it seems unlikely that Sir Alex Ferguson, the United manager, will sign another striker now that Michael Owen has joined on a free transfer.

Despite the uncertainty over Terry and Eto’o, however, Carlos Tévez’s £25.5 million transfer to City should finally be ratified this week, with the former United striker rejecting suggestions that a cross-city move would be an act of betrayal.

“If I play for Manchester City I don’t think the United fans will feel I am a traitor,” Tévez said.

¤ Christopher Samba has put Manchester City on red alert by refusing to pledge his future to Blackburn Rovers (Graham Chase writes). The centre back was brought to Ewood Park by Mark Hughes in January 2007 and the City manager wanted to take him to Manchester last summer.

The 25-year-old defender has also been linked with Everton and West Ham United and has left himself open to a move away from Blackburn.

“I am still at Blackburn, so I can’t comment,” he said. “Whoever wants me will need to talk to Blackburn Rovers and we will see. I am calm and waiting.”