Manchester City are now in the race for Spanish teenager Mateo Joseph Fernandez.
Fernandez was born in Spain but his family are English and he qualifies for both countries.
The 17-year-old is understood to have a £1.2million release clause in his contract which runs until next summer.
Leeds have initiated contact with Espanyol over a deal worth less than the release clause.
However, the Daily Mail says City are hoping to prevent their Premier League rivals from completing the transfer.
The Sky Blues believe Joseph's physicality and natural ability will suit their playing style.