Atletico Madrid appear to have beaten Everton to Sandro Ramirez’s signing.
Ronald Koeman had planned to secure the Malaga striker on a cut-price deal courtesy of a £5.1 million release clause in his current contract.
Both the Blues manager and director of football Steve Walsh watched Sandro in person during his side’s 3-0 win over Celta Vigo earlier this month.
Tottenham and Sevilla had also been tracking the one-time Barcelona forward but Everton were understood to have stolen a march on their contemporaries.
However reports in Spain suggest that it is Atleti who have won the race for his signature as they await the outcome of their appeal against a transfer ban.
The Court of Arbitration for Sport (CAS) is set to decide whether to lift FIFA sanctions against the Madrid club for breaching foreign youth player registration.
According to AS, Sandro’s agent Gines Carvajal visited the Vicente Calderon on Sunday in a bid to tie up a deal before the player heads off on his summer break.
Atleti remain confident that the CAS will lift their ban, which will all but confirm Everton’s failure to land the prodigious 21-year-old.