Sporting Lisbon are reportedly closing in on a potential replacement for Bruno Fernandes.
Both Manchester clubs have been tipped to make a move for Portuguese midfielder Fernandes this summer.
United are believed to be in pole position although City chiefs reportedly met with Sporting officials this week.
The two clubs discussed a possible partnership to sign the best youngsters across Europe with Fernandes also on the agenda.
And Sporting appear to be set to sign a new central midfielder, potentially paving the way for Fernandes to depart.
The Portuguese side are closing in on a deal for Palermo's Aleksandar Trajkovski, reports Alfredo Pedulla.
Trajkovski, 26, is tipped to sign a four-year contract with Sporting and his arrival could be announced by the end of the week.
The switch would hand United and City a major boost in their hopes of landing Fernandes this summer.
United boss Ole Gunnar Solskjaer is keen to bring in new faces in midfield this summer following Ander Herrera's departure.
Newcastle's Sean Longstaff is a target and Solskjaer's search would intensify if Paul Pogba gets his wish and leaves the club this summer.
United also want to bring in a new central defender with Harry Maguire on their radar but Leicester are likely to demand a world-record fee for the England international.
