Palmeiras have supposedly turned down Manchester City's opening approach for highly-rated centre-back Vitor Reis, but the Premier League champions remain confident of striking an agreement.
It was reported a couple of days ago that the Citizens were preparing to send a proposal worth around €40m (£33.5m) to Palmeiras for Reis, who is regarded as one of the best defensive prospects in South America.
The 2006-born starlet has already played 22 times for the Palmeiras first team - scoring two goals - and he has apparently already agreed personal terms with Pep Guardiola's side.
However, Palmeiras can afford to play hardball in negotiations given that Reis is under contract at the club until December 2028, and according to journalist Ben Jacobs, City's first bid has been turned down.
The two clubs remain in talks over a potential deal, though, and Guardiola's team remain confident that they will eventually get their man, but he may not link up with the first-team squad right away.
Palmeiras 'want to keep City-linked Reis for Club World Cup'
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Instead, Palmeiras apparently want to keep Reis on the books for the upcoming Club World Cup this summer as part of any deal with City, who would therefore loan him back to Brazil should they come to an agreement this month.
Palmeiras will face Lionel Messi's Inter Miami, Porto and Al Ahly in the group stage of the 2025 Club World Cup, which will conclude on July 13 with the final at MetLife Stadium.
However, the club's president Leila Pereira recently told The Athletic that while interest in Reis is widespread, they were yet to receive a formal bid for the 18-year-old, saying: "He is another of our sons from the Palmeiras academy.
"He is extremely talented and very important for our team. We intend to count on him to help us in the Club World Cup. Several European clubs are interested. At the moment there are only soundings from various clubs... no official proposal.
"He has a contract. But if there is an interesting offer for Palmeiras and the player, we will sit down and talk. I want to say the information coming out is not correct. Palmeiras is in no hurry to sell. There is an extremely important tournament for Palmeiras and we need Vitor."
Brighton & Hove Albion are also said to have failed with an offer for Reis, who captained Brazil's Under-17s at the age-group World Cup and South American Championships in 2023.
What about Abdukodir Khusanov?
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While City still have some work to do to bring Reis to the club, the Citizens are believed to be on the verge of capturing 20-year-old Lens and Uzbekistan centre-back Abdukodir Khusanov.
The 2004-born defender - who has also been linked with Tottenham Hotspur and Newcastle United - missed training with the French team on Friday, which manager Will Still revealed was due to illness.
However, the Sang et Or head coach also confirmed that negotiations were advancing between the two clubs, and the English champions are expected to wrap up Khusanov's signing within the next few days.
Nevertheless, Guardiola was quintessentially tight-lipped on possible incomings when asked about transfers ahead of City's FA Cup third-round clash with Salford City on Saturday evening.