Manchester City sent scouts to watch Porto striker Andre Silva at the weekend, according to Abola and Record.
The Portuguese newspapers say that both City and the Gunners had representatives at the match between Porto and Pacos Ferreira on Saturday.
A report in the Daily Star had suggested that Real Madrid were lining up a £50 million move for the young Portuguese forward in the summer, and that the Champions League winners are favourites to sign the player.
Real cannot bid in the January transfer window because of their transfer ban but Porto has said to be willing to wait for their bid for the 21-year-old. The Portuguese press have however not reported on the Spanish giants interest in Silva with Abola saying Arsenal and Manchester City are the two likeliest clubs with the required finances to make a move happen.
Silva has been in excellent form this campaign with 15 goals in 26 appearances in all competitions for Porto.
