Real Madrid are thought to be in pole position to sign Germany defender Nico Schlotterbeck, 26, from Borussia Dortmund this summer with Barcelona also vying for his signature in a 50m euros (£43.4m) deal.

Arsenal and Borussia Dortmund had scouts present in Sweden On Thursday to cast an eye over Red Star Belgrade's 17-year-old midfield prospect Vasilije Kostov in the Europa League against Malmo.

Real Madrid are stepping up their interest in Borussia Dortmund and Germany centre-back Nico Schlotterbeck, 26, as France defender Dayot Upamecano, 27, is expected to sign a contract extension at Bayern Munich.

Manchester City's Norway winger Oscar Bobb could join Borussia Dortmund on loan until the end of the season, while Crystal Palace, Bournemouth and Newcastle are among the clubs also interested in the 22-year-old.

Real Madrid have entered the race for Borussia Dortmund defender Nico Schlotterbeck, 26, with the Bundesliga club valuing the German at around £60m.