Partenopei president Aurelio De Laurentiis confirms the club are targetting deals for the South American duo and Raul Albiol as they look to put a €124.5 million war chest to use
Higuain has long been linked with a move to Arsenal this summer while Damiao has been rumoured to be on Tottenham's radar since last season, but both moves have failed to materialise thus far in the close season.
With Napoli having sold star striker Edinson Cavani for €64 million to Paris Saint-Germain on Tuesday, the Partenopei are now focused on completing a double swoop for the South American duo, while Madrid defender Raul Albiol is poised to move to the club upon the completion of his medical.
Speaking to supporters via Twitter, De Laurentiis said: "We are negotiating for Leandro Damiao and Higuain. Albiol is already having a medical."
De Laurentiis also confirmed that Cavani's sale has doubled the funds available to Rafa Benitez this summer, with the club ready to splash out €124.5m on new talent before the 2013-14 campaign.
"If we add that €64.5m to the €60m that we had in our budget already then we get €124.5m that Napoli will invest with diligence and experience," he added.
Benitez has already bolstered the Serie A runners-up this summer, with goalkeeper Rafael and attacking duo Jose Callejon and Dries Mertens having completed moves to Stadio San Paolo in the past week.