The two clubs have spent the majority of the transfer window disagreeing over a potential switch to North London for Liverpool striker Luis Suarez.
And now both clubs are believed to have set their sights on MK Dons’ 17-year-old midfielder.
Alli is already 6ft 2 inches tall, and has impressed in the heart of the Dons midfield, despite his tender age.
He is reportedly a buy and loan back option for both clubs, as the MK Dons are adamant he will feature strongly for them this season and are therefore reluctant to sell.
He was watched by senior scouts of both clubs during the club’s season opener against Shrewsbury on Saturday, with a possible auction for the player thought to be on the cards.
Alli has already won seven caps for England at youth level, and is regarded as perhaps the best player the Dons have ever produced.
A big offer is likely to turn their heads however, although they will attempt to force through the loan back option, with Alli unlikely to gain any regular first team football at either club should he complete the move in time for the new season.
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