Benfica playmaker Joao Neves is wanted by both Manchester clubs this summer.
Premier League champions Manchester City and rivals Manchester United are both chasing the Portugal pass master.
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Per O Jogo, City are firmly in the race to sign the 19-year-old, while Paris Saint-Germain are also circling.
The source adds that any club will have to activate his £100million release clause if they want to sign Neves.
Benfica are in no mood to sell and will not be negotiating with clubs to make the deal easier.
City do already have Portuguese players in the squad, including Ruben Dias and Bernardo Silva.