MANCHESTER UNITED and Chelsea are keeping a keen eye on £35million Gremio midfielder Arthur Melo, according to reports.

But Barcelona have missed out on the chance to sign him - after he was pictured wearing one of their shirts.

5 Arthur Melo has got the attention of Man Utd and Chelsea

The Daily Mail report that the Nou Camp club had looked to have agreed a deal for the 21-year-old Brazilian.

Arthur had gone so far as meeting Barca's sporting director Robert Fernandez and an image of him in the club colours was circulated online.

However, that is believed to have angered Arthur's parent club Gremio and now they are looking at selling him to the Premier League.

They also insisted a deal had not been struck and demanded he would only be allowed to leave for his £45m buyout clause.

5 The Brazilian is expected to make their World Cup squad for Russia 2018

5 The Gremio midfielder was on the brink of joining Barcelona

However, when it comes to English sides, Gremio would be willing to lower the cost to £30-£35m.

A Barcelona move now looks increasingly unlikely given the addition of £145m Philippe Coutinho.

Yerry Mina is also set to move to Catalonia and it is thought the La Liga leaders need to shift roughly eight players to balance the books.

It is thought United and Chelsea would go for a more experienced player, given the chance.

5 Arthur Melo was previously on the brink of joining Barcelona Credit: Twitter

5 Philippe Coutinho's move may have scuppered Arthur Melo's switch Credit: Splash News

But they are still expected to test the waters with Gremio to see if they were being genuine with their offer.

Manchester City and Arsenal are also said to be aware of the Brazil Under-20s star who is expected to make the full World Cup squad for Russia 2018.