Penarol prospect Facundo Pellistri is being tracked by Arsenal.

The 17 year-old attacker is being watched by the Gunners, Atletico Madrid and Barcelona this season.

El Observador says Pellestri could be on the move from Uruguay in January.

The youngster shares the same agent as Real Madrid starlet Fede Valverde and his father has taken calls from all three European powers.

Atletico hope they have an advantage given their success with Uruguayan talent like Diego Forlán, Diego Godín, Jose Giménez and Ceballos Rodriguez.