Real Madrid are closing on a deal for Paraguayan sensation Sergio Diaz.

Marca says the 18-year-old attacking midfielder currently plays at the Asuncion giants Cerro Porteno in his home nation, where he made his first-team debut for at the age of 16.

'EL Chico' Diaz has represented his country at every youth level and caught Madrid's eye with his standout performances at the recent Toulon tournament.

Diaz has even earned the nickname 'Kun' due to the similarities in playing style with Manchester City's Sergio Aguero.