Everton and Leicester City are chasing Hamburg midfielder Walace.
The Sun says the Bundesliga strugglers only signed the defensive midfielder from Gremio for £8million in the January window – but has impressed in his limited appearance time so far.
Hamburg battled to sign him in the first place and are already bracing themselves for summer offers from England for the powerhouse.
He started off his time in Germany in the best possible fashion, marketing his Hamburg league debut with a goal against high-flying RB Leipzig last week.
Champions Leicester, along with Italian side Lazio were one of the clubs who nearly signed the gold medal winner from the Rio Olympics.