Ranieri has heart set on City

Ranieri has been offered a contract extension by Parma, after steering them to safety in Serie A, however the 55-year-old appears to have made up his mind that he will replace the sacked Stuart Pearce at City.

"The Manchester City challenge reminds me of the experience I had at Chelsea where without spending £1, we build a good team," said Ranieri in an interview with La Gazzetta dello Sport. "It was an achievement that convinced (Roman) Abramovich to buy the club. I created the Chelsea miracle from nothing. Then, mountains of money came as well as a selection of top players."

Ranieri spent plenty of Abramovich's money once the takeover had been completed but prior to that there were some funds available under the previous ownership, most noticeably the purchase of Frank Lampard for £11million.

However, the Italian also oversaw the sale of several high-profile players. The Rome-born coach guided Chelsea into the Champions League semi-finals and also a runners-up finish in the Premiership before Abramovich appointed Jose Mourinho at Stamford Bridge in the summer of 2004.

Ranieri has been counting the days for his return to the Premiership ever since.

"Why England again? Because at this time, English football is a fascinating window that hypnotises you," he said. "Some of the richest men in the world would do ridiculous things in order to buy an English club because the Premier League has become a luxury stage.

"Here (in England), there are so many champions, seven or eight teams at the top level just as Italy had some time ago. Unfortunately for us, Italian football, we are poorer, despite Milan's extraordinary victory in the Champions League. To return to England means to be at the centre of something important."

Ranieri is so optimistic about what he can achieve at Manchester City that he believes they can challenge bitter rivals Manchester United.

"The idea is to face Manchester United as soon as possible and be at the same level as them in the standings," he said. "With Manchester City, I hope to complete every stage. This time, I have been chosen whereas before, Abramovich found me at the club."