Manchester City have considered moving for Manchester United target Douglas Costa.

The Guardian says City are aware of Costa's burgeoning reputation but they, too, regard Gremio's demands as exorbitant and would rather pay significant transfer fees for established players.

United's policy is different, targeting players below the age of 25 if large sums are involved, and Costa fits into their transfer strategy as a young, talented footballer whose value should feasibly go up in future years, just as happened with Cristiano Ronaldo, who was 18 when he signed from Sporting Lisbon.

Costa, a Brazil under-20 international, has other admirers in Spain and Italy but has indicated he would like to move to England and become United's fourth signing of their summer, following Luis Antonio Valencia, Michael Owen and Gabriel Obertan to Old Trafford.