ESPANYOL officials are confident of completing a cut-price deal for Sunderland midfielder Julio Arca before the end of next week.

But with new Black Cats chairman Niall Quinn desperate to retain the services of one of his club's longest-serving stars, the identity of Sunderland's new manager is likely to determine where Arca plays his football next season.

The popular Argentine met Quinn this week to discuss his future amid mounting speculation over a move to Spain.

Arca is understood to have admitted that he is attracted by a possible switch to La Liga, but stressed that he will not be rushed into a hasty decision while Sunderland's future is unclear.

Instead, the versatile left-footer is willing to wait to see who Quinn appoints as Mick McCarthy's successor before deciding whether he wants to extend his six-year stay at the Stadium of Light.

Sources in Spain have suggested that Espanyol have already received outline agreement for Arca's transfer but, with Quinn's consortium continuing to move towards the 90 per cent stock ceiling required for a compulsory buy-out of the Black Cats, there have been no formal talks between the two clubs.

Instead, Espanyol are believed to be testing the water ahead of an anticipated offer for Arca's services at the start of next week.

With just one year of his current contract remaining, Arca will be free to negotiate a free transfer from the Stadium of Light in January.

With that in mind, Espanyol sporting director Paco Herrera is confident of landing the 25-year-old for an initial fee of just 800,000 Euros or £550,000.

Herrera will then propose that price rises by another 200,000 Euros (£138,000) if Arca goes on to represent the Barcelona-based club in a European competition.

Initially, the versatile left-footer will be offered a three-year contract, although both parties will have the right to extend the deal by a further 12 months.

After making 177 appearances for the Black Cats since signing from Argentinos Juniors in July 2000, Arca is arguably the most popular member of the current Sunderland squad.

He played a pivotal role in the Championship-winning campaign under Mick McCarthy and was one of the few players to emerge from last season's disastrous relegation from the top-flight with his reputation intact.

His departure would represent a major blow to a Sunderland support desperate to see their side return to the Premiership at the first time of asking.

But, with Quinn struggling to attract a big-name manager to the Stadium of Light, time appears to be running out, with the club's opening pre-season game now just two days away.

Sunderland's Drumaville consortium are refusing to draw a line under their efforts to entice Sam Allardyce, but the chances of the former Black Cat returning to Wearside receded further last night when Wanderers' chairman Phil Gartside insisted recent speculation linking the current Bolton boss with the North-East was "nonsense".

Allardyce is one of three leading figures currently being tracked by Sunderland's new owners - Martin O'Neill and Roy Keane are also under consideration - but Gartside is adamant he will not be moving to the Stadium of Light this summer.

"It is nonsense to suggest Sam would even consider leaving Bolton to go to Sunderland," said the Trotters' chief. "How could anybody even think that?

"Why would he consider leaving one of only five clubs to finish in the top ten of the Premiership for the last three years to go to a club that has just been relegated and where there is no money?"

There was almost more bad news for Quinn to contend with at the start of the week when Dean Whitehead was rushed to hospital with an injury that could have led to him losing his foot.

The highly-rated midfielder, who was the subject of a £1.2m bid from Premiership newboys Reading last week, had been suffering from blisters on his foot for the best part of a fortnight.

But when the blisters began to become infected, he was rushed into a hospital in Sunderland and immediately placed on a saline drip.

With the infection spreading up Whitehead's leg, doctors were initially worried that his foot could have turned septic, a scenario that might have led to an amputation.

Thankfully, they were able to treat the problem and, after missing a week's training, the former Oxford midfielder is expected to feature in Saturday's pre-season friendly with Forest Green.

Sunderland's Player of the Season said: "I feel fine now. I'm raring to go."

Kevin Kyle will miss this weekend's game because of a thigh problem but Liam Lawrence is expected to feature despite missing training with a thigh strain.