Arsenal and West Ham United are reportedly interested in signing Palmeiras midfielder Danilo before the January 31 deadline.
The 20-year-old Brazilian established himself as a key player for the 2021 Copa Libertadores winners last season, scoring four goals and providing three assists in 49 appearances across all competitions.
According to Brazilian news outlet R7, Arsenal have lodged a €20m (£16.7m) bid with another €5m (£4.2m) in bonuses to sign Danilo in January.
West Ham, meanwhile, have 'probed the conditions' to sign the Brazilian this month, but they are yet to have tabled an offer.
The Gunners are believed to have identified Danilo as a short-term replacement for Thomas Partey, who is currently on international duty with Ghana for the Africa Cup of Nations.
As for the Hammers, David Moyes is looking to bolster his squad in the winter window, with Danilo one of a number of targets who they are closely monitoring.
Palmeiras are not prepared to entertain any January bids for Danilo until the summer, and they are under no pressure to sell the midfielder, who has a £86m release cause in his contract which expires in December 2025.