Brazilian defender Danilo has turned down a new contract at Porto - and that has put Liverpool and Manchester United on red alert.

Danilo, 23, who has won 11 caps, has been offered a one year extension to take him up to 2017 with a bigger buy-out clause of £40m.

But Danilo - who is also being tracked by Real Madrid - appears to be ready to leave Porto for a bigger European club.

Southampton's Nathaniel Clyne and Tottenham's Kyle Walker remain targets for United while Liverpool have been linked to a number of defensive additions.

Source: Daily Mirror