According to the Daily Express, the Brazilian international forward has been put up for sale by Santos with Atletico Madrid thought to be one of the clubs interested.
Arsenal, Tottenham and Southampton are the three Premier League clubs reportedly keen on Damiao, who has fallen woefully out of form after moving from Internacional to Santos for £15m.
The 24-year-old was heavily tipped to make a move to Europe last summer but stayed in Brazil to give himself the best chance of making Brazil's World Cup squad for this summer's tournament.
Unfortunately for the player, that plan has backfired in the worst way possible as the Arsenal and Spurs striker target was left out of Luiz Felipe Scolari's 23-man squad.
The bad news has reportedly led Doyen - the third-party investment group that owns Damiao's playing rights - to explore opportunities for the striker to move to Europe.
And that, according to the report, has alerted the attention of Arsenal and Spurs. Both Premier League clubs are expected to be busy this summer, with both potentially on the lookout for an addition up front.