Real Madrid have earmarked Valencia left-back Jose Luis Gaya as their next top summer target but, according to reports in Spain, they are expected to face competition from Chelsea and Manchester City, who are also willing to meet his €18m (£13m, $19.5m) release clause.

Even though there are still two months until the end of the season, manager Carlo Ancelotti's side have already started their summer overhaul with the arrival of Porto right-back Danilo.

Following the signings of Lucas Silva, Marcos Asensio – who remains on loan at Mallorca – and the coveted Martin Odegaard during the January transfer window, Los Blancos announced the arrival of Danilo for £23m.

And if they had to beat Barcelona and Manchester United for the signature of the Brazilian right-back, Spanish newspaper AS claims they now face a similar battle with Chelsea and City for Gaya.

The 19-year-old left-back has attracted the attention of some of the biggest clubs around Europe after proving to be a sensation in La Liga, having provided four assists and scored one goal despite being a defender.

Valencia are desperately trying to commit his future to the Mestalla with a new deal that would give him a pay rise and increase the value of his release clause.

Gaya has reportedly rejected the first bid made by the club and AS claims Real Madrid are trying to convince Gaya's agent to snub any future renewal offer in order to move to the Santiago Bernabeu instead.

Los Blancos are looking to close the deal in order to part ways with Fabio Coentrao after the Portuguese star recently claimed he would like to play for Manchester United.

However, AS claims Chelsea and City are willing to pay Gaya's buyout clause. According to the reports, City manager Manuel Pellegrini wants the La Liga starlet to replace Aleksandar Kolarov as the Serbian is ready to leave the club in the summer.

Meanwhile, Chelsea boss Jose Mourinho may be interested in securing his services amid reports claiming Filipe Luis could return to Atletico Madrid after failing to establish himself in the starting line-up this season.