Chelsea and Manchester City are in contact with Sporting CP for Joelson Fernandes.
The talented 17-year-old as attracted the attention of Europe's elite following a breakthrough season - despite only making four league appearances.
Arsenal have been strongly linked with the player with Mikel Arteta keen to strengthen his attacking options and A Bola says the club have submitted a second bid.
Having seen an £18m bid rejected the Gunners have reportedly returned with a £29m offer which has also been turned down.
The Daily Star says the player has a £40m release clause and Arsenal are keen to offer a player of their own into any deal in order to drive the price down.
However, the club will need to act quickly with Chelsea and City now making their move.
