Arsenal are reportedly in talks over a deal to sign young Brazilian striker Gabriel Martinelli, with Palace and Watford also keen.

According to a report from Brazilian outlet UOL, Arsenal have had scouts watching the player closely.

The Gunners have held talks with Ituano regarding a deal, but Unai Emery’s men are facing competition to complete a deal.

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The report claims that Arsenal scout Everton Gushiken was in attendance to see Ituano play Palmeiras.

Watford have been well known to look towards South America for young talent, while Palace also completed the signing of Lucas Perri from Sao Paulo during the January window.

There is also said to be interest in Martinelli from teams in Brazil, with likes of Flamengo, Santos and Cruzeiro also reportedly making contact.

The 17-year-old’s six games in four games have clearly not gone unnoticed, with teams around Europe keeping a close eye on him.