According to Catalan daily Sport.
But Elano's wages (roughly €2m/year, apparently) are too much for Espanyol even over a six month loan and so they are asking City to help with the costs. The article also mentions that Lazio have made a bid.
Sport is the main football paper in Barcelona (along with El Mundo Deportivo), and their Espanyol sources proved to be ahead of the British press with the Zabaleta transfer.
English translation of the article here.
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