Magno, 18, is already attracting attention from a number of top European clubs despite only plying his trade with Brazilian outfit Vasco da Gama over the past year.
He has scored twice in 24 appearances for Vasco da Gama.
Esporte News Mundo says newly-crowned Premier League champions Liverpool hold an “enormous advantage" in the “war" to sign Magno this summer.
Any deal to sign Magno will reportedly be handled by agent Giuliano Bertolucci, who holds a significant amount of experience in negotiating deals for Brazilian players.
Vasco da Gama are believed to value Magno at £27million, despite his current contract only running until the end of 2022.
Yet any potential suitors could land him for around £18million this summer.
Magno first made a name for himself in Brazil's youth setup, helping the Under-17 side clinch the World Cup last summer.