Real Madrid Transfer News: Danilo Fee Set at €40m Amid Manchester United Talk

Real Madrid know exactly what will it cost to sign FC Porto's highly rated defender Danilo. The Portuguese club has set a €40 million fee for the coveted Brazilian.

The club wants to make that an official clause, but Danilo has so far rejected any new deal, according to Marca reporter Jose Felix Diaz. That news has piqued the interest of Premier League duo Liverpool and Manchester United, per Daily Mirror reporter John Cross.

But it's Los Blancos who are in the strongest position to sign Danilo. Diaz claims Madrid will be competing with both United and Manchester City, along with Paris Saint-Germain, Bayern Munich and arch rival Barcelona for Danilo's services.

An athletic and versatile full-back, Danilo has the power, pace, drive and skill to be an asset defensively and going forward. That's exactly what's he's been for a resurgent Porto team this season.

He's found the net four times and created a goal during this campaign, per WhoScored.com. The 23-year-old has qualities Los Merengues have lacked at full-back this season.

Ancelotti has used different combinations from uninspiring quartet Marcelo, Fabio Coentrao, Dani Carvajal and Alvaro Arbeloa this season. But he's never settled on a pairing he seems comfortable with.

What Madrid lack is a true workhorse and marquee player at the position. Danilo is already proving he has the talent to be both.

However, Ancelotti may struggle to justify spending so much on a full-back, even for a club never afraid to flash the cash. But Real will have no choice in this case. No club ever does when it buys from Porto.

Diaz correctly describes the club's president, Pinto da Costa, as the "the shrewdest operator in European football." That may be an understatement after Costa's club has made a habit of selling players for massive profit.

Paulo Duarte/Associated Press

The likes of Eliaquim Mangala, James Rodriguez and Radamel Falcao have all fetched the club huge revenues within the last decade. Current striker Jackson Martinez is expected to do the same this summer, provided a club offers £29.5 million, according to Metro reporter Jamie Sanderson.

Don't be surprised if Danilo joins him as another expensive export off a quite phenomenal production line. Ancelotti needs to add fresh talent to a stuttering Madrid defence. Acquiring the most touted young defender in Europe would be a good start.