Villarreal are tabling a bid for Gremio starlet Douglas Costa.

The teenage attacking midfielder is a confirmed target for Real Madrid and Manchester United.

However, Porto Alegre sources say Villarreal chief Jose Manuel Llaneza was in Brazil over the weekend to discuss terms with Gremio.

Gremio director Luiz Onofre Meira confirmed: "Gremio know our financial realities. So we must seek the right price for the player. It's a situation that can have a positive outcome."