The agent of Gremio attacking midfielder Douglas Costa has confirmed contact with Real Madrid and Manchester United.

"Someone who works for Real Madrid called me 10 days ago to show their interest," Douglas' agent Cesar Bottega told AS. "But Manchester United called as well.

"Buy-out clauses are made to be negotiated and if Real Madrid believe in him we must speak," he added about Douglas' £22 million clause.

"He [Douglas] would settle more easily in Spain - it is sunny and the language resembles Portuguese. I think there is a chance we can do business next January.

"We want him to play in the next Copa Libertadores with Gremio. He keeps his feet on the ground."