Inter Milan Close to Signing Lucas Moura.

Inter Milan have edged closer to signing Brazil starlet Lucas Moura, with reports in Italy claiming the Serie A outfit have agreed a transfer fee with his current club Sao Paulo.

Lucas has also been linked with Manchester United and Real Madrid over the summer. But Sky Sport Italia reported late on Thursday evening that Inter had trumped their powerful rivals by agreeing to a €27 million transfer fee, which could rise to €32 million depending on appearances.

All clubs had previously balked at Sao Paulo's €40 million valuation of Lucas, with United understood to have failed with bids before Inter increased their pursuit of the 19-year-old.

Earlier on Thursday, Inter president Massimo Moratti confirmed director Marco Branca had been in "ongoing" negotiations with Sao Paulo officials over the transfer fee.

"As you know we are strongly interested in the guy," Moratti told Sky Sport Italia. "But our interest does not compel us to accept every kind of condition imposed."

Lucas and his Brazil team-mates, meanwhile, are preparing to take on Honduras in the quarter-finals of the London Olympics at St. James' Park this Saturday.

Inter Milan Close to Signing Lucas Moura.

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