Barcelona and Real Madrid have reportedly identified Manchester City winger Leroy Sane as a potential signing.

With less than 16 months remaining on his contract, Sane is being linked with a move away from the Etihad Stadium ahead of the next transfer window.

Bayern Munich are known to be admirers of the Germany international, who may be open to returning to the Bundesliga.

However, Diario Sport claims that Barcelona and Real Madrid are monitoring the situation, aware that the 24-year-old could be available for a cut-price fee.

The two Spanish giants are keen to make several additions at the earliest opportunity, while also having to take into account their outlay on transfer fees and wages.

Although City are said to be demanding as much as £92m, the Premier League outfit will realistically have to consider lower offers.