Leeds United are leading the race for Espanyol youngster Mateo Fernandez.

The Daily Mail says Leeds are ahead of Manchester City in the race to sign Fernandez.

Liverpool are also keen on the 17-year-old, who is set to leave Espanyol after failing to agree terms of a new contract.

The Whites are hoping to beat their rivals to Fernandez, who has been linked with a number of other European clubs, including Barcelona.

It is understood that he has a release clause of just £1.2m and Leeds have discussed an offer below that to ensure a compromise can be reached for January.