Tottenham are believed to be preparing a late bid for Mohamed Diame, but could face competition from Arsenal, according to the Metro.

Both clubs are hoping to activate the £3.5 million release clause in the midfielder’s contract before the window shuts at midnight, and Hammers boss Sam Allardyce has confessed that he fears losing him.

“It is total confusion,” said the manager, when asked about Diame.

“I’m as confused as anyone. I hope we don’t, but we might lose him.”

Arsenal have been linked with a move for the French midfielder for much of the January window, but it is thought that Spurs have stolen a march on their London rivals in recent days in the race to land his signature.

Tottenham manager Andre Villas-Boas wants to add another midfield enforcer to his ranks following the season-ending injury to Sandro, while Arsene Wenger commented this week that he is “a little light” in midfield.

It is understood that along with the release clause and agent fees, Diame could cost up to £5 million, and the player himself has in the past stated he would like to move to North London if a deal could be reached.

West Ham had been hopeful of tying the midfielder down with a new contract, but talks have not progressed.

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This article was first posted on January 31, 2013