Real Madrid are watching Penarol striker Agustin Alvarez Martinez.

AS says Real are scouting the young centre-forward, who struck in Uruguay's World Cup qualifying victory over Bolivia.

Known as Canario, the 20 year-old is regarded as the among the most exciting young talents in South America.

Real are showing serious interest in Canario, who is close to Fede Valverde and shares the same agent.

Interestingly, Penarol president Ignacio Ruglio was in Spain last week to meet with Real counterpart Florentino Perez and take a tour of the Santiago Bernabeu stadium and Valdebebas training centre.