West Ham are one of three clubs interested in taking Crystal Palace right-back Nathaniel Clyne away from Selhurst Park this summer.
The 21-year-old is out of contract with the Eagles and has no intention of signing a new one but they will still be due a compensation fee for the youngster who has excelled for them over the past few years.
As well as Hammers boss Sam Allardyce, both Fulham and Reading are also said to be keen to land the player and are ready to make a compensation offer, Palace want £3m but will have to settle for a lot less.
Palace co-chairman Steve Parish told the South London Press: “We need to do a deal with Clyne.
“There is a bit of action in the background and we know there is a lot of interest.
“It is just about sorting out who it is best to go to and who will put the right money on the table. We’re all working to get an outcome.
“Clubs don’t want to go down the tribunal route. It is a game of cat and mouse on the fee – we’ve just got to let that play out.”