Liverpool set for transfer battle with PSG over €70m-rated Porto star Alan Varela - dubbed the 'next Javier Mascherano'

The Premier League and Ligue 1 giants have been monitoring the Argentine defensive midfielder since his arrival at Porto and, along with Borussia Dortmund, could make an attempt to sign him in the summer transfer window, Foot Mercato reports.

The 22-year-old joined the Portuguese side from Boca Juniors last summer and has already impressed enough to catch the eye of top European teams. He has been dubbed the 'next Javier Mascherano' due to his nationality and combative playing style.

Varela signed a five-year contract with Porto when he made the move to Europe last August after making 111 senior appearances for Boca. The Liga Portugal club are said to have slapped a €70 million (£60m/$76m) price tag on the Argentina Under-20 international.

Liverpool and PSG will likely continue to monitor Varela over the coming months before deciding whether or not to make an attempt to snap him up. However, Porto may hope to hold onto their rising star for at least another year.