Arsenal and Manchester United may have some competition on their hands if they want to land Borussia Dortmund's Mario Gotze this season after Real Madrid entered the race for the talented youngster’s signature.

Gotze is widely regarded as one of the finest young prospects on the continent and helped his side claim back to back league titles in the last two seasons as well as featuring for Germany at Euro 2012.

Manchester United have been linked with a move for Gotze - who also shone in the Champions League as Dortmund helped knock Manchester City in the group stages - as have Arsenal.

Arsenal reportedly tried to land Gotze earlier this year but failed with thier attempts to lure the German youngster, while Manchester United have also tried in the in past.

Earlier this year, Gotze's agent was forced to deny claims of talks with both Manchester United and Arsenal, insisting that his client was going nowhere.

Now though Real Madrid have entered the race for his signature according to Spanish source El Confidencial, who claim the Spanish giants see him as the man to come in and replace Xabi Alonso in the long term.

Alonso has so far failed to sign a new deal with Madrid and is on course to leave the Bernebeu before his contract ends in 2014 unless a new agreement can be reached.

El Confidencial report that Madrid are formulating plans in case Alonso leaves, and have identified Gotze as the man to take up his role at the heart of their midfield.

While Dortmund would likely be unwilling to let one of their best players go, reports last month claimed that the 20-year-old has a £30 million release clause written into his contract whick expires in in July.

One possible spanner in the works is the fact that Gotze renewed his contract until 2016 last season in a deal worth around €4 million a year, hinting at the fact he may be content to stay put for the time being.

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