Liverpool face competition from Real Madrid for Sao Paulo teen Lucas, according to Confidencial.
The 19-year-old has been followed by a number of clubs across Europe, including Manchester United.
However, Liverpool were also noted as having an interest, with Madrid now joining in the pursuit of the Brazilian.
"I’m happy that big European clubs are interested in me, as it shows I’ve been doing my job well," he said last month.
"Right now my mind is fully focused on Sao Paulo. I want to win titles here, write my page in the club’s history and only then, yes, will I think about a move abroad."
The player is rated at £20 million according to reports, but his £80 million release clause means many top clubs will be put off.
Liverpool's deluge of spending during the summer proves they're not afraid to splash the cash, however, it's uncertain whether they'll be prepared to part with more money for a player unproven in Europe.
Jose Mourinho sees Lucas a s long-term stand-in for ex-Liverpool midfield Xavi Alonso.