Arsenal and West Ham United could reportedly slug it out for the Palmeiras midfielder Danilo before the January 31 deadline.
The 20-year-old Brazilian has enjoyed an impressive campaign last season, contributing four goals and three assists in 49 appearances across all competitions.
Chelsea are ready to pounce for the Brazilian Danilo from Real Madrid by making a £26.5m bid this summer, according to reports in the Italian website Gianlucadimarzio.com.
The Blues are ready to launch their proposed bid to try and land the right-back this summer.
The defender has been touted as a summer target for the west Londoners in recent days as manager Antonio Conte looks to bolster his squad ahead of next season.
The Portuguese club FC Porto have confirmed that Danilo will join Real Madrid next season after the Spanish club agreed a whooping 31.5 million euros deal for the 23-year-old right-back.
View image | gettyimages.comThe Brazil international has won 14 caps without netting a goal for his country. He is currently in his third season with the Dragons and has won two Portuguese league titles with the club.