Manchester City and Real Madrid are ready step up their interest in Brazilian superstar Neymar and gazump Barcelona to seal his signature.

According to the Daily Mail, the Catalan club have a £50million pre-contract with the Santos man but the Etihad Stadium outfit are ready to outbid them.

The report claims Neymar would have to pay significant compensation if he breaks the agreement to move to Camp Nou either this summer or after the 2014 World Cup.

However, Manchester City and Real Madrid are ready to cover any cost of breaking the agreement and will also improve his personal terms.

It also claims that Barcelona have become worried that clubs are preparing to legitimately buy out their agreement with the 21-year-old.

Manchester City director of football Txiki Begiristain sees Neymar as the perfect replacement for Carlos Tevez, whom has just over a year left on his £200,000-a-week deal.

Tevez leaving could free up space in the Manchester City budget to bid big for Neymar.

Citizens boss Roberto Mancini will be looking to rebuild his squad for next season after a disappointing defence of their Premier League title this season.

A 2-0 loss at Everton on Saturday afternoon, added to Manchester United’s victory over Reading, meant City slipped to 15 points behind their local rivals.

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