Liverpool and Chelsea are watching Fulham teen Fabio Carvalho.

Fulham believe Carvalho's head has been turned by interest from Real Madrid yet there are offers in the Premier League that are also being considered.

Liverpool, Chelsea and Southampton have all been monitoring his situation with an eye of taking advantage of a contract situation that is likely to see him leave Craven Cottage at the end of this season.

Liverpool and Chelsea are both being kept in the loop over any offers though - and Real Madrid are putting together their proposal at the moment, reports Eurosport.