Barcelona are reportedly interested in signing Palmeiras midfielder Danilo.
The 21-year-old has been heavily linked with a move to Arsenal after impressing the Premier League leaders with his performances for Palmeiras.
Danilo has established himself as a key figure in the Palmeiras side, chipping in with 12 goals and nine assists in 141 appearances.
The defensive midfielder secured his first league title with the club in the 2022 season, while he has also won two Copa Libertadores, one Brazilian Cup and one Recopa Sudamericana.
Arsenal allegedly had a bid turned down during the summer, and there was a belief that they had given up their pursuit of Danilo.
However, a recent report indicated that the Gunners are still monitoring his situation as they look to strengthen their midfield.
Arsenal could face competition for Danilo's signature, though, with Barcelona believed to be showing an interest.
According to Estadio Deportivo, the Catalan giants view the Brazilian as a potential replacement for Sergio Busquets.
With his contract set to expire at the end of the season, Busquets is currently considering his future, amid speculation about a potential move to the MLS.
Danilo would likely command a substantial fee, with his current contract set to run until December 2026, which could prove to be a stumbling block for Barcelona.
As a result, the Catalan side are looking at the possibility of forming a joint-ownership plan between themselves and fellow La Liga side Real Betis.
The proposed deal would be similar to the one previously agreed between the two clubs for current Tottenham Hotspur right-back Emerson Royal.
The 23-year-old was co-owned by both Barcelona and Betis, and after making 79 appearances for Los Verdiblancos, the Catalans exercised their right to buy Emerson outright in 2021, before quickly selling him to Spurs.
However, it is currently unclear whether Betis would be open to entering into another co-ownership deal with Barcelona.
In the meantime, Xavi's side are preparing for an important league game against Atletico Madrid on Sunday.
