Arsenal and Manchester United have been watching teen sensation Dejan Kulusevski as a £42million transfer race hots up.

Swedish midfielder Dejan Kulusevski has impressed on loan at Parma this season from fellow Serie A side Atalanta.

The 19-year-old, who can play across the midfield, has scored three goals and provided five assists in 15 Serie A games this season, helping propel Parma to eighth place in the table.

The Sun says Arsenal and United are among several Premier League sides to have sent scouts to watch him in recent weeks.

Kulusevski's agent has already met clubs to discuss a potential transfer before the Euro 2020 finals next summer.

United are one of those clubs, according to respected Italian football journalist Nicolo Schira.

Schira said Inter as well as United have met Kulusevski's agent with a view to a New Year deal.