Manchester United and Manchester City scouts are tracking Benfica attacker Rodrigo Moreno.
The People says Benfica need to sell at least one of their stars in the summer but insist it is not in their plans to let Rodrigo - who was born in Brazil but holds a Spanish passport - go without a battle.
United and City spies were both at the Stadium of Light last weekend to see Benfica's victory over Gil Vicente, while the Gunners have long been monitoring the form of 20-year-old Rodrigo.
The striker starred for Spain's Under-21s as they were crowned European champions last season and has taken the Portuguese league by storm this term.