Arsenal and Leicester City are reportedly both interested in signing AC Milan youngster Manuel Locatelli.

The 18-year-old has broken into the first-team set-up at Milan this season and it is understood that his performances in Serie A have attracted the attention of a host of European clubs.

According to Calciomercato, both Arsenal and Leicester have scouted the midfielder this season and the Premier League duo will go head to head for his signature at the end of the season.

The same report claims that Locatelli wants to move to a club competing in next season's Champions League.