UPDATE: Reports out of Brazil are that Bahia has rejected the Sounders’ latest offer. If the Sounders were resigned to spending a Designated Player spot on Gregore, they might be willing to put in a bit more. If they thought he could still fit as a TAM, this could spell the end of their pursuit.

It’s starting to look like the Seattle Sounders may really be closing in on making their first significant signing of the offseason. Brazil’s UOL Esporte is reporting the Sounders have made a bid of about $4 million for 80 percent of Gregore’s rights. Sounder at Heart has learned that was about $1 million more than the Sounders’ first offer about a week ago.

Various reports have suggested Brazil’s Gremio may still be bidding for Gregore as well, and it’s unclear if the Sounders have come to personal terms with the player.

If the Sounders are able to push this across the line, Gregore would likely become their third Designated Player. The $4 million fee would make it very unlikely that Gregore could be bought down below the DP threshold barring a rather dramatic restructuring of the way the rule works.

By all appearances, though, the 25-year-old would be worth it. Gregore is a high-volume passer who is unafraid of getting into tackles and reads the game well. He’s spent the last two seasons in Brazil’s top flight, starting 69 Serie A matches in that time as Bahia have finished mid-table.

This story was originally published on Jan. 14 and updated on Jan. 15.