Sicily's Palermo club is looking to rival Manchester United in the battle for Gremio's Douglas Costa. Reports out of Italy suggest that Palermo are looking to make a serious bid for the 18 year old attacking midfielder.

Costa is highly rated and draws many comparisons to his compatriot Ronaldinho, not the least because they both started their careers with Gremio.

Palermo are hoping to close the deal in time to have Costa in Italy during the January transfer season.

Manchester United have recently also been linked with a £7million move for the Brazilian starlet, although Palermo are reportedly willing to spend in excess of £8million.