Liverpool and Newcastle are watching Boca Juniors midfielder Alan Varela.

Football Insider reports the Reds and the Magpies are 'keen' on acquiring the 21-year-old's services but could face competition after the midfielder has caught the eye of a host of clubs across Europe.

The Boca Junior midfielder has been watched by figures at Anfield after scouts were sent to Argentina to monitor his performances.

There has been further claims that Benfica could go for the Argentinian after losing Enzo Fernandez. The Portuguese club have been shrewd in their business in South America and landed a healthy profit following the sale of the World Cup winner to Chelsea.

Barcelona are also watching developments as they consider Varela a replacement for Sergi Busquets.