Manchester City and Chelsea are going to head-to-head in a battle to sign Real Madrid defender Danilo, sources have told ESPN FC.
Both clubs want the Brazilian full-back and sources say that any deal for the 26-year-old would cost around £26.5 million.
City boss Pep Guardiola wants to sign at least three full-backs and admitted at a news conference ahead of City's International Champions Cup game with Manchester United in Houston on Wednesday that Danilo was one of "three or four players" they are talking to.
The club stepped up their interest in Danilo after missing out on Dani Alves, who decided to join Paris Saint-Germain after leaving Juventus on a free transfer.
City hope that Danilo's versatility will also make him a major asset. Guardiola believes he can play left-back and as a defensive midfielder -- a position he played in for Santos when they won the Copa Libertadores in 2011.
City have also been linked to a move for Southampton defender Ryan Bertrand, but ESPN FC has been told that the Saints were reluctant to sell the England international.
They have already signed Kyle Walker from Tottenham Hotspur in a deal that could reach £50m, but want another right-back option after allowing Pablo Zabaleta and Bacary Sagna to leave when their contracts expired at the end of the season.
City are also close to securing a deal for Monaco's Benjamin Mendy with Aleksandar Kolarov the only senior left-back remaining at the club.
"We are talking with three or four players who have not joined us, we need that to refresh the players and rebuild a little bit more the club," Guardiola said.