Porto expect Liverpool to battle it out with Leeds to sign winger Otavio.

The Reds bought Luis Diaz from the Portuguese champions for £37million in January and want to continue beefing up their forward options.

Darwin Nunez followed Diaz through the door earlier this month but Sadio Mane’s departure means their business is not done yet.

There is a release clause of £51m in Otavio’s contract but the Dragons are willing to sell him for less than that.

The Mirror say Leeds have had a £26m bid for the Portugal international, 27, rejected with Porto holding out for £38m.

Otavio's agent is said to be in England trying to push a deal over the line after a season which saw him set up 13 goals and score three in the Primeira Liga.

While the Reds are looking to give Jurgen Klopp even more options going forward, Leeds may be preparing for the departure of Raphinha.

The Athletic report that Arsenal are ready to step up their efforts as they try to agree a deal with the Whites for the Brazilian winger.

In other news

According to Sky Sports, Chelsea would be willing to include Timo Werner in any deal that sees them sign Juventus defender Matthijs de Ligt.

AS say that Juventus and Paris Saint-Germain have been in talks over a potential move for Neymar, with the Blues also mentioned.

Chelsea want to sign both Raheem Sterling and Barcelona’s Ousmane Dembele this summer, report the Mail.