Nottingham Forest are closing on a deal for Palmeiras midfielder Danilo.

The 21-year-old has been a long-term target for Arsenal.

But Forest are in talks with Palmeiras over a move for Danilo.

UOL Esporte says the Reds are in “advanced talks" over a €20m (£18m) transfer for the highly-rated defensive midfielder. There are a few “details" to be ironed out before a deal can be finalised, though.

The two clubs appear to have agreed a fee for Danilo but Palmeiras are said to still be “discussing" the structure of the payments. The reigning Brazilian champions are also claimed to have asked to keep the player until the summer, which is described as a “possibility".