Tottenham are battling Real Madrid for Corinthians midfielder Paulinho.

Paulinho's release clause stands at £17m but Spurs were hoping to engineer a deal worth £15m for the 24-year-old.

Corinthians were close to an agreement with Spurs but will now demand that Paulinho's release clause is met given Madrid's eleventh-hour interest, says Marca.

Paulinho's agents were in London this week for talks with Spurs officials.