Manchester City are reportedly still at the head of the queue for Nuno Mendes but are reluctant to spend the €50m (£43m) required to sign the Sporting Lisbon defender.
The 19-year-old, who was a part of the Portugal squad at Euro 2020, enjoyed an impressive 2020-21 campaign at club level, contributing one goal and two assists in 35 appearances.
A host of clubs, including Manchester United and Real Madrid, are allegedly interested in the teenager, but Man City are said to be leading the race for his signature.
According to Correio da Manha, Pep Guardiola's side have a firm interest in Mendes but are not currently prepared to pay the €50m (£43m) transfer fee that Sporting are demanding.
The report also claims that the Portuguese giants would want to keep the youngster on loan for the 2021-22 campaign as part of any agreement.
Mendes, who still has four years left to run on his contract with the Lions, was on the bench for two of Portugal's four matches at this summer's European Championship, missing the other two fixtures through injury.