Manchester City lead chase for Paulo Dybala

Manchester City have emerged as the favourites to sign highly-rated Argentine teenager Paulo Dybala.

The Mirror claims that the Premier League champions are willing to fork out £5m for the 18-year-old striker, who plays his football at Instituto.

Dybala has also attracted attention from Inter Milan, AC Milan, Real Madrid and Chelsea, though none have made a firm offer.

Italian side Palermo claim to have struck up a deal with Instituto giving them first refusal on the forward, though it has since been alleged that the club was negotiating with an agent who does not have the authority to sanction a transfer.

Dybala, who scored 17 goals in 38 games in the Argentina's second tier last season, can join City without a work permit as he holds an Italian passport.