Manchester City are showing interest in highly-rated Brazilian teenager Paulinho.

The 17-year-old plays for Vasco da Gama, broke into their first team last year, and was named young player of the Brasileiro Serie A championship last week.

Atletico Madrid are understood to have already had a £12million bid rejected while Paris St Germain are another club following his progress closely. However, Vasco say he has a buy out clause set at £25million.

Paulinho (right) is attracting interest from some of Europe's biggest clubs, including Man City

Paulinho has been capped 21 times at U17 level for his country. He can play as a winger or striker and became the first player born in 2000 to score in the Copa Libertadores.

Paulinho's agent Carlos Leite was in England last week as he gauged interest in the youngster.

City, who expect to lose 16-year-old striker Bobby Duncan to Liverpool when his contract expires, have discussed a possible deal for Barcelona teenager Adria Bernabe.

The 16-year-old left-footed playmaker, also a target for Arsenal, has rejected a proposal from Barcelona and his agents Carles Puyol and Ivan de la Pena are interested in the youngster joining City.