Spain's top two clubs are reportedly interested in signing young Brazilian talent, Douglas Costa, who currently plays for Gremio.

Sport reports that plenty of scouts were watching the attacking midfielder at the recent South American Under-20 Championships, and that Barcelona and Real Madrid were among the most interested parties.

The 18-year-old has inevitably attracted plenty of comparisons with  Ronaldinho because of his style of play, and he impressed in Venezuela for Brazil.

Playing for Gremio, Costa currently has a buy-out clause of 28 million but his agent has said that no-one has made an offer for him yet.

"We have not spoken with any team. We only know that a range of talent scouts have been watching him, but for the time being there is nothing official," Cesar Bottega told calciomercato.it.

Costa is a left-footed midfielder who has plenty of technical ability and talent and has also been praised for his free-kick taking.

As an emerging talent Gremio were keen to tie him down for the foreseeable future and he currently has a contract with them until 2013.

He is yet to play many matches for the Brazilian side and if either Real Madrid or Barcelona are going to pay his buy-out clause next summer, it could be a big risk.

The Catalan side have already had Ronaldinho in their ranks though, so it would not be a surprise to see them lure another talented Brazilian midfielder.