Manchester City and Real Madrid are reportedly monitoring the development of Porto youngster Cardoso Varela.

The two European juggernauts are currently preparing to square off in the second leg of their Champions League quarter-final on Wednesday night.

However, both have invested in putting together high-quality academy systems, with City having caught up with some of their more historic rivals over the years.

In City's case, Rico Lewis and Phil Foden are the standout graduates of recent years, but an array of other homegrown players, including Cole Palmer, have been sold for a hefty fee.

As for Real, homegrown talent being introduced into the senior ranks has been less forthcoming of late, with Los Blancos instead spending heavily on several young Brazilian players.

Vinicius Junior and Rodrygo have since developed into two of the best players in the world, while 17-year-old Endrick is due to join the attacking options in the summer.

City are no strangers to that approach either, with the likes of Yan Couto and Savio having been purchased from the same nation, but it appears that a certain level of focus is now being placed on Portugal.

According to Footmercato, City and Real are ready to become involved in a tussle to secure the signature of Varela.

The 15-year-old is yet to make a first-team appearance for Porto, but he has already secured game time for the Portuguese giants in the UEFA Youth League.

All three outings have come from the substitutes' bench, Varela featuring against Shakhtar Donetsk, AZ Alkmaar and Mainz 05.

However, Porto are struggling to retain the services of Varela courtesy of less than three months remaining on his contract.

What other clubs are interested in Varela?

The report claims that as many as seven other teams are pushing to try to win the race for the Portugal Under-17 international's signature.

Barcelona, Atletico Madrid, Bayern Munich, Borussia Dortmund, Inter Milan, Juventus and Paris Saint-Germain are all said to be interested.

Aside from PSG, each of the other eight teams have allegedly presented Varela's representatives with a proposal.

Regardless of who Varela chooses to join, he is expected to start in the youth ranks, with his 16th birthday not until October. body check tags ::