Barcelona are locked in talks with Ecuador's SD Aucus for Diego Palacios.

The talented 19 year-old midfielder has just completed a successful loan in Holland with Willem II, where his form caught the eye of Barca scouts.

The LaLiga champions are now in negotiations with parent club Arcus to sign Palacios.

PSV Eindhoven, Ajax and Olympique Lyon are also in contact, but Palacios favours a move to Barca.

Barca president Josep Maria Bartomeu, reports Sport, is set to close an agreement in the coming days.