Manchester City have held further talks with Palmeiras over a £25million deal for Vitor Reis, 18, after Mail Sport reported that the English champions were aiming to secure the signature of the Brazilian teenage star.
The centre-back is also wanted by Brighton but Palmeiras want £35m, with the south coast club having previously made an offer of only £23m.
The 18-year-old is regarded as one of the best defensive prospects in South America and is attracting interest from a host of club's from around Europe and the Premier League.
Brighton have enjoyed a strong first half of the season under new manager Fabian Hurzeler with the club currently sitting 10th in the Premier League standings and have ambitions to climb up the standings.