Manchester United face stiff competition for the signature of Paulo Henrique Ganso's signature with Italian giants AC Milan lining up a January bid according to the Metro.

Sir Alex Ferguson has had the 21-year-old Brazilian's progress monitored throughout his time at Santos and is convinced he can fit straight into the young side he is currently building.

But the Red Devils boss now has to two major obstacles to overcome if he wants to bring the talented playmaker to Old Trafford with the price tag on his shoulders and Milan's interest potential stumbling blocks.

The Serie A side haven't exactly kept their intentions under wraps with coach Massimiliano Allegri desperate to bring one of South America's rising stars to the San Siro in January.

Santos will settle for nothing less than half of the £40 million buyout clause in Ganso's contract with the Rossoneri set to bid £21 million when the transfer window opens.

United will either have to match or exceed that offer and also persuade the midfielder that his future lies in England as opposed to Italy where he could link up with international teammates Alexandre Pato, Thiago Silva and Robinho.

Whilst United have a Brazilian trio of their own in the form of Anderson and the Da Silva twins they aren't as involved in the national squad which could prove to be a hinderance to their chances of securing his services

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