Aston Villa are interested in Borussia Dortmund's attacking midfielder Nuri Sahin.
The 22-year-old £6million-rated Turkey player has failed to agree terms on a new contract and is available for a knockdown fee.
However, Villa will face strong competition from Real Madrid, Chelsea and Liverpool.
Newcastle are stepping up interest in Toulouse's Franck Tabanou after Arsenal joined the chase for left back Jose Enrique.
Alan Pardew sees Tabanou, 22, as an ideal replacement and has already opened talks over a bid for the France U21 winger who has excelled at left back after filling in there this season.
He has also been watched by Liverpool, but their preference is Enrique.
However, Arsenal are concerned that Gael Clichy will not sign a new contract and have added Enrique, 25, to a list that includes Everton's Leighton Baines and Celtic's Emilio Izaguirre.
Under the terms of his Dortmund agreement, Sahin could join another club in Germany for around £5million but would cost anyone from outside the Bundesliga just over £8m. (shouldn't it be the other way round? 😛)
Villa still saw that as a bargain for a player rated one of Europe's up-and-coming talents and would have had no hesitation paying it to ward off interest from Liverpool and Chelsea.
But sources close to the newly-crowned Bundesliga champions confirmed to Sportsmail that Real have dashed Villa's hopes by reaching a verbal agreement to add Sahin to Jose Mourinho's squad during the summer.