Manchester City are considering a move for Uruguayan defender Sebastian Coates, according to The Guardian.
After signing Gael Clichy and Stefan Sarvic already this summer, Roberto Mancini appears ready to splash out on his defence again as City stray away from marque signings and continue to focus on building a squad capable of challenging for top honours domestically and in Europe.
Scouts from a number of Premier league clubs have been tracking the defender, with Arsenal joining City in the race.
Arsenal are desperate to improve their defence following a season which saw problems in their back-four undermine their challenge for the league title and the Champions League.
City had the joint second bet defensive record in the Premier League last season, while Arsenal the poorest inside the top four.
With Carlos Tevez expected to leave the club, City are also expect to bid for Sergio Aguero, as their South American contingent continues to grow.