According to Sky Sport Italia, Milan are keeping a close eye on Corinthians midfielder Gabriel Moscardo, but face competition from Chelsea and Liverpool.
Moscardo only turned 18 in September and is already a regular in the starting XI for the Brazilian club.
He received his first cap for Brazil at Under-23 level when he was still only 17 years old.
There is interest from Milan, but Sky Sport Italia transfer pundit Gianluca Di Marzio also warns that there is strong competition from the likes of Chelsea and Liverpool.
The asking price is also said to be in the region of €25m.