Fulham boss Rene Meulensteen is looking to capture the exciting youngster on a loan deal until the end of the season, according to the Mirror.
Sergio Canales, 22, is surplus to requirements at La Liga outfit Valencia, and the team's management are prepared to let him leave the club.
The former Real Madrid player has been plagued by injuries in his short career, including two cruicate knee ligament injuries, that kept him sidelined for 12 months.
Operating as an attacking midfielder, he has also attracted the attention of Everton boss, Roberto Martinez.
It is believed a loan deal would also include a "first right to buy clause", in a which a £4m bid would seal a permanent deal.
Canales is still a highly-rated prospect, and has been capped at Under-21 level for Spain.
Fulham are struggling in the Premier League, sitting only a point above the relegation places, the Spanish playmaker could make a impact in their relegation battle.
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