Manchester United and Manchester City are reportedly locked in a battle for Rochdale's teenage sensation Luke Matheson.

The 17-year-old right-back caught the eye earlier in the season when he scored against the Red Devils in the League Cup.

The Daily Star now reports that City boss Pep Guardiola is also interested in the young defender, who made his league debut for Rochdale at just 15.

While the Greater Manchester club do not want to sell their prized asset, they are believed to be aware that the list of suitors for Matheson is growing by the week and that they may be best served selling the defender, valued at £10m, in January.

Matheson, who made his debut for the England Under-18 side earlier this month, has made 10 appearances for Brian Barry-Murphy's men this season.