The 17-year-old came up through the ranks of the Portuguese club's youth system and has represented both his club and country at the youth stage. His impressive display has seen him being promoted to the first team at the end of the last season.
According to the Portuguese publication A Bola, the teenager's form for Braga has seen him attract interest from the Premier Gunners and the Catalan club. Arsenal have already tabled a €15m (£13.1m, $16.7m) in signing the teenage attacker.
However, the north London club's offer has been turned down by the Portuguese outfit. Neto has a release clause of €20m (£17.6m. $22.3m) in his contract and Braga president Antonio Salvador is only ready to do business if a potential suitor can match their asking price.
Barcelona, who are also interested in signing the player, are preparing a bid to sign Neto. Arsenal need to act quickly if they hope to land one of the upcoming prospects in the Portuguese football.
Apart from Arsene Wenger's side and Barcelona, Arsenal's league rivals Manchester United are also in the race for his signature. Neto's father, a former hockey player, also called Pedro Neto, confirmed the Red Devils and the Catalan club's interest in the player.
However, Neto Sr confirmed that it was Braga president who convinced the player and his family to continue his development with the Portuguese outfit.
"Sportingly the offers from Barcelona and Manchester United were interesting, but economically we never received an offer," the player's father told the Spanish publication Sport.
"The Braga president was also key. It was [Salvador] who convinced us that the best thing for my son was to continue with Braga."
With Arsenal, Barcelona and United all keen on landing the teenager, it should be seen whether Braga can manage to hold on to the young prospect. Neto took nine minutes to score his first team goal against Nacional and impressed against Tondela in the final game of the last season.