Arsenal and Napoli have joined Benfica in the race to sign Monza’s 21-year-old Portuguese striker Gustavo Varela, as European clubs begin to assess their options ahead of the transfer window.

Varela’s impressive form has attracted attention from the three clubs, with his performances putting him among the players attracting interest from across Europe.

Meanwhile, Manchester United could face a costly move for Newcastle United left-back Lewis Hall, 22, who is valued at more than £70 million. The club is also linked with former Newcastle manager Eddie Howe, who could demand to bring his entire backroom staff if approached about the managerial position. United would reportedly have to pay Newcastle £6 million in compensation to secure Howe’s services.

Bournemouth are also working to protect one of their key players, with owner Bill Foley approving another club-record contract offer for England midfielder Alex Scott, 23. Chelsea, Liverpool, Arsenal and Tottenham are monitoring the situation.

Liverpool remain interested in Borussia Dortmund midfielder Felix Nmecha, 26, but he is not considered a priority target. The club has also joined Real Madrid and Barcelona in tracking Brighton and Croatia defender Luka Vuskovic, 19.

At Crystal Palace, the club is reluctant to sell Senegalese winger Ismaila Sarr, 28, in January, despite his previous desire to join Liverpool. Talks over a new contract have taken place.

Palace could also consider a managerial change, with former Brentford and Tottenham boss Thomas Frank and ex-Burnley, Everton and Nottingham Forest manager Sean Dyche among the reported contenders if Frenchman Pierre Sage is dismissed. The club is expected to favour an unemployed manager.

Elsewhere, Ajax are interested in signing Nigerian striker Tolu Arokodare, 25, permanently from Wolves after his loan move to the Dutch club.