Manchester United Transfer News: Latest Rumours on Morgan Schneiderlin, Otavio

AC Milan have reportedly joined the race for Manchester United midfielder Morgan Schneiderlin, who has also been linked with a move to Tottenham Hotspur. Meanwhile, Arsenal and United are said to be keeping a close eye on FC Porto star Otavio.

According to Calcio Mercato Web (h/t Daily Star's Jamie Styles), the Rossoneri are hoping to seal a deal for Schneiderlin in January. That would bring the France international to Italy on loan as a replacement for the injured Riccardo Montolivo.

Richard Gibson of the Sunday Mirror previously reported Spurs and Crystal Palace are also keeping an eye on Schneiderlin, who has barely featured under manager Jose Mourinho.

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The former Southampton star was one of the most wanted midfielders in the Premier League during the summer of 2015. He eventually completed a move to United, where he was expected to partner with Bastian Schweinsteiger to give the side a formidable one-two punch.

Both men flopped at Old Trafford, however, and neither has played a big role under Mourinho. The new manager pulled the trigger on a deal for Paul Pogba last summer. Mourinho has preferred Marouane Fellaini, Ander Herrera and Michael Carrick for the other midfield spots.

Schneiderlin's United career seems as good as over. Given his past performances for Saints, he'll likely be a popular target for other clubs. Bleacher Report's Matt Jones believes Everton should take the plunge:

The high level of interest he's expected to draw will likely work against Milan. United invested a good chunk of money to bring him to Old Trafford in 2015. They'll hope to recuperate at least some of that cash in a sale.

A bidding war would suit the Red Devils fine, all but ruling out a loan move. Milan could try to land Schneiderlin in a permanent deal. But the Italians are more likely to invest their money in other, more high-profile players.

Per Sole 24 Ore (h/t Football Italia), the club is in the middle of a takeover from a Chinese investment group featuring some major names. Their newfound wealth should signal the arrival of superstars, not United castoffs.

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Elsewhere, Transfer Market Web (h/t Daily Star's Jamie Styles) reports Arsenal and United are both following up on Otavio. Juventus and Borussia Dortmund also are interested.

The 21-year-old reportedly has a massive £53.3 million release clause and a long-term contract Porto could use to their advantage. The Dragons have a tremendous reputation for keeping hold of their top talents in the transfer market and selling at major profits.

That won't stop the Premier League giants if the player fits the bill, however. The Brazilian finally seems to have come into his own during the 2016-17 campaign.

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Otavio moved to Porto from Internacional in 2014. He barely saw the pitch during his first season in Portugal, as Oliver Torres and Ruben Neves overshadowed him. He eventually completed a loan move to Vitoria Guimaraes but is now back with the Dragons and starting just about every match.

The playmaker is versatile and can line up all over the pitch. But he does most of his damage in support of star striker Andre Silva, another popular name in the scouting community.

Here's a look at some of his highlights:

Per Styles, he has already scored six goals and delivered nine assists this season. That is supreme production for a young player only scratching the surface of his potential.

His release clause is absurdly high for a young player with limited experience, and he's not expected to leave Porto anytime soon. But if Arsenal or United can negotiate a more realistic fee, a deal could be a possibility soon.