Manchester City are reportedly preparing to renew their interest in Chelsea right-back Malo Gusto during the January transfer window, although any potential deal could depend on the Blues agreeing to lower their valuation of the French international.

According to reports, Pep Guardiola's side remain keen on signing the 23-year-old after failing to reach an agreement with Chelsea during the summer transfer window. TEAMtalk suggests City could revisit their pursuit if the Stamford Bridge club becomes willing to negotiate a lower fee.

Chelsea previously placed a valuation of approximately €90 million on Gusto, but City were unwilling to meet that demand. The substantial asking price proved a major obstacle to negotiations, leaving the Manchester club unable to secure the defender before the summer deadline.

City's continued interest reflects their efforts to strengthen the right-back position, an area they were unable to reinforce during the previous transfer window. Guardiola is understood to be assessing potential options as the club considers how best to improve its defensive depth for the remainder of the campaign.

However, the possibility of a January transfer could also be influenced by Manchester City's ongoing legal dispute involving 115 alleged breaches of Premier League financial regulations. The club is awaiting the outcome of its appeal, adding another factor to the uncertainty surrounding its future plans.

Gusto's situation at Chelsea has also changed considerably under manager Xabi Alonso. The defender previously played an important role during Enzo Maresca's time in charge, but he has struggled to secure regular opportunities under the current coaching regime.

His limited involvement has raised questions about his long-term future at Stamford Bridge. Reports indicate that Gusto has played for just two minutes across Chelsea's last four Premier League matches, suggesting that he has fallen down the manager's pecking order.

Several alternatives have been used in the position. Pedro Neto has featured as a wing-back, while summer signing Marco Palestra has returned to full fitness. Young defender Josh Acheampong has also been preferred at right-back in recent matches, further limiting Gusto's opportunities.

Despite his reduced playing time, the Frenchman is reportedly content at Chelsea for now. Nevertheless, his position could become more difficult to maintain if he continues to struggle for minutes, potentially encouraging him to consider a move elsewhere.

Paris Saint-Germain have also been linked with an interest in Gusto ahead of 2027, meaning Manchester City could face competition if they decide to make a formal approach.

Chelsea are understood to have considered selling the defender during the summer and could be prepared to entertain another offer if the financial package meets their expectations. However, the club's previous €90 million valuation remains a significant obstacle for any interested side.

Gusto is among several Chelsea players whose futures could be reviewed as the club evaluates its squad. Benoit Badiashile, Alejandro Garnacho, Robert Sanchez, Axel Disasi, Mykhailo Mudryk and Filip Jorgensen have also reportedly been linked with uncertain situations.

For now, no agreement has been reached, and Gusto remains a Chelsea player. City's potential January pursuit will depend largely on whether the two clubs can bridge the gap over his valuation and whether the defender's situation changes in the coming months.