Real Madrid have reportedly joined Barcelona in the race to sign San Lorenzo youngster Matias Palacios.

The attacking midfielder only turned 17 in May but has already broken into the first team at San Lorenzo.

Palacios is currently with the Argentina squad at the Under-17 World Cup, and he played the full 90 minutes of their tournament opener against Spain Under-17s on Monday evening.

Earlier this week, it was reported that Barca were interested in a deal for the youngster and would watch him on a regular basis during the tournament before deciding whether to make a move.

However, according to Diario AS, Madrid are also admirers of the teenager, who is said to have a £15.5m release clause in his current deal with the Blue and Reds.

Palacios has also been capped at Under-20 level by his national team.