Bayern also reportedly showing interest in midfielder.
AC Milan have reportedly entered the race for Barcelona midfield starlet Thiago Alcantara, amid speculation over his release clause this summer.
According to various sources in the Italian media, as reported by football-italia.net, the 22-year-old has been gathering increased attention in light of his current contract situation.
It is rumoured that a clause in his deal has been activated this summer having failed to play more than 60 percent of the games that he was eligible for last season. That clause has reduced his buyout fee from €90m to €18m.
With speculation suggesting that Barcelona are not moving to offer him a new deal to wipe out the possibility of losing him for the reduced fee, it has alerted clubs across Europe.
Both Manchester United and Manchester City are supposedly keeping a close eye on developments, while Bayern Munich are said to be interested given Pep Guardiola’s arrival at the start of next season.
However, Milan are the latest team to join the race and are monitoring the situation closely with an eye on making a bid for the promising youngster.
Spanish paper AS have revealed that City have made the player aware of their interest and are willing to buy him out of his contract with the Catalan giants.
However, any club hoping to acquire Thiago for the reduced fee must make a move by August 1, at which time the clause allows the fee to jump back up to €90m.
The Rossoneri have made it clear that their strategy is to now invest in youth, and depending on their financial position on this deal, they may be spurred to action given the reduced fee.