Manchester United and Real Madrid have missed out on exciting Brazilian youngster Douglas Costa.

United boss Sir Alex Ferguson attempted to have Douglas Costa trial at Old Trafford, only for Gremio to turn down their approach.

Real Madrid president Florentino Perez was also keen, well aware of the teenager's huge reputation across South America.

But the midfielder's agent, Cesar Bottega, revealed last night that Douglas Costa is joining Shakhtar Donetsk and will fly to the Ukraine this weekend. Shakhtar are coughing up £5 million for Douglas Costa, with the deal including a 20 per cent sell-on clause for Gremio.