According to the Daily Star, Serie A giants Napoli are 'lining-up' Di Matteo as their new boss in the summer.
The former Italian international impressed Napoli bosses in the very early stages of his spell as Chelsea caretaker when he helped mastermind the 4-1 win over Napoli in the Champions League which reversed the 3-1 defeat in Naples which ultimately cost Andre Villas-Boas his job.
Napoli intend to replace their coach in the summer despite currently lying a respectable fourth in the Serie A table.
"Di Matteo is seen as the ideal candidate to replace (Walter) Mazzari when the Napoli manager’s contract runs out," the Star says.
"Chairman Aurelio De Laurentis does not see eye to eye with Mazzari and Di Matteo is exactly what he is looking for – a young coach with a proven record in the Champions League."
Meanwhile, Manchester City boss Roberto Mancini will not suffer the same fate as fellow Italian Di Matteo but he can forget about big signing in January.
Questions have been raised about Mancini's position after another disappointing Champions League campaign but according to the Daily Telegraph "owner Sheikh Mansour bin Zayed al Nahyan and his senior executives at the club remain determined to keep faith with the former Inter Milan coach."
However the same paper says that City attempts to reduce their transfer spending and move towards compliance with UEFA’s Financial Fair Play regulations ensures that there will be no major arrivals in the New Year.
The paper adds: "plans are already being made for next summer’s transfer window to follow a similarly prudent path, with senior figures ruling out moves for Roma’s Daniele de Rossi and Atletico Madrid forward Radamel Falcao, despite Mancini admiring both."
One player who could eventually end up at the Etihad though is Crystal Palace sensation Wilfried Zaha.
According to the Sun, City will offer £12m for the recently capped England prospect in January, with a further £3m in add-ons also being offered.
Crucially, City will also be willing to loan back Zaha to Palace for the rest of the season so as not to derail the club's promotion bid.
To some other rumours and the Daily Express says Arsenal are considering a January move for Schalke striker Klaas-Jan Huntelaar as he looks to add a striker in the next transfer window. The paper also says that: "Wenger has yet to talk to Thierry Henry about another loan move back to the Emirates, but the Gunners legend is an option. Braga striker Eder, 24, is also a player Wenger is monitoring. "
Liverpool are confident of finalising a £6million deal for Blackpool’s Tom Ince and will look to add Chelsea’s Daniel Sturridge for a further £12m. Arsenal’s reluctance to sell Theo Walcott in January, regardless of his contract negotiations, will delay any possible move from Liverpool until the summer, although the player may yet receive offers from elsewhere with Juventus, Chelsea and Manchester City keen. (Daily Mail)
However, Tottenham are stepping up their interest in Blackpool star Ince but will have to pay £10million for his signature in January according to the Sun.
Harry Redknapp has been lined up to return to management at Queens Park Rangers - but not until after their weekend trip to Manchester United. Former Spurs boss Redknapp and his advisers have been sounded out by QPR to take charge once this weekend's game is out of the way which leaves Mark Hughes as effectively a dead man walking. (Daily Mirror)
Tottenham have failed in a second bid to sign Roma midfielder Miralem Pjanic. The White Hart Lane club tried to sign the 22-year-old Bosnian in the summer. And during their trip to the Italian capital for Thursday night’s Europa League match against Lazio, Spurs had another go with a £12million offer to buy for Pjanic in January. (Daily Mirror)
And finally, Blackburn have told goalkeeper Paul Robinson that he can leave. The former England international had showdown talks with boss Henning Berg on Thursday after Rovers made a bid to bring back former star Brad Friedel from Tottenham. (Daily Mirror)