Manchester United are closing in on a deal for Gremio starlet Douglas Costa. The Times says the Brazilian club are holding out for about £20 million - close to the release clause stated in the player's contract - but United are reluctant to pay that much and hope that a compromise can be reached shortly.

United initially wanted to take Douglas, 18, on a three-week trial, but while that request was rejected by Grêmio, negotiations over a permanent deal are continuing.

The Guardian says United have put together a financial package, with an initial outlay of £7m, plus a series of success-related add-ons if the player lives up to the promise that has brought him to the attention of Ferguson via John Calvert-Toulmin, the club's principal scout in Brazil.