LONDON - ARSENAL manager Arsene Wenger believes Manchester City are not living in the real world following media reports the club has offered more than 100 million pounds (S$220 million) for AC Milan forward Kaka.

'I don't feel in connection with (the Manchester City bid) at all because we live in a football club which lives in the real world,' Wenger was quoted as saying on Arsenal's website (www.arsenal.com) on Thursday.

'The implications (of the transfer fee) would be a disturbance on the market. Inflationary trend in a deflationary world,' the Frenchman added.

AC Milan's TV channel said earlier on Thursday that the Italian Serie A club was considering an offer from Premier League City for the 26-year-old Brazil playmaker.

'We are in a world where we live from three kinds of income - gate receipts, the sponsors and the television money,' Wenger said. 'That is the real world of football.'

'Manchester City are in a different world because they do not live with their income.'

City manager Mark Hughes, who works for the richest club in the world after a takeover by the Abu Dhabi United Group, told reporters on Thursday a deal to sign Kaka was still on. -- REUTERS