Real Madrid president Florentino Perez is said to be on a recruitment drive for young players and has turned his attention to South America.
The Bernabeu club have already reached an agreement with Flamengo for highly-rated Brazilian forward Vinicus Junior.
And Spanish outlet Don Balon claim Perez has identified another two targets – Venezuelan striker Yeferson Soteldo and Argentinian midfielder Santiago Ascacibar.
Negotiations with Soteldo’s club Huachipato are said to be at an advanced stage and the 20-year-old is awaiting to hear back from Real.
However, if the La Liga champions pass up the opportunity to sign him he is reportedly not short on other options.
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A host of clubs in South America are said to be showing interest in Soteldo who is rapidly becoming one of the hottest prospects on the continent.
And a number of European clubs have also been tracking the highly-rated striker.
Don Balon claim a deal for Ascacibar is at a much earlier stage and no approach has been made to German side Stuttgart.
Real Madrid are said to have been attracted to the defensive midfielder due to his comparisons with fellow countryman Javier Mascherano.
The 20-year-old has been turning heads in the Bundesliga and has made 16 appearances in all competitions this term for Hannes Wolf’s side.
Perez’s initial plan is to bring Ascacibar to the Bernabeu with the view to incorporating him in the first team in two to three seasons.
He is seen as ideal competition for Casemiro and Marco Llorente.