Real Madrid are opening formal negotiations with Vasco da Gama for 16 year-old midfielder Coutinho.

The youngster is regarded as the best talent of his generation in Brazil and Marca says Real have employed a local agent to open talks about a fee with Vasco.

Real president Ramon Calderon wants the deal to be negotiated through official channels and has already informed Coutinho's agent, Guillermo Vilas, that personal terms won't be considered until they receive the green light from Vasco.