Real Madrid boss Carlo Ancelotti has confirmed the Spanish giants are considering launching a bid for Cruzeiro starlet Lucas Silva during the January transfer window.

The 21-year-old midfielder has reportedly caught the eyes of a number of big European club after becoming one of the sensations of the Brazilian league, leading his club to the championship for the second year in a row.

Manchester United were heavily linked with the midfielder during the summer, after his agent Luiz Rocha revealed he had been in contact with Louis van Gaal's side over a possible transfer deal.

Meanwhile, recent reports in Spain claimed Arsenal had joined the race to secure his services and following Mikel Arteta and Jack Wilshere's recent injuries, manager Arsene Wenger is desperately looking to bolster the midfield in the coming transfer window.

Cruzeiro president Gilvan de Pinho Tavares last week admitted there was interest from both Spanish and English clubs in Silva and he urged any potential suitors to meet their £12m demands to secure his services.

"There's no definitive offer yet – we're waiting to receive a formal offer but we have already set a price for the player, based on his market value; for any figure lower than €15m, Cruzeiro is not willing to negotiate."

And it looks like Real Madrid are going to be the winners once again in a hotly contested transfer race.

Just last week, Ancelotti assured Los Blancos were not planning to make any addition during the January transfer window. But the former Chelsea boss has now admitted the club's interest in Silva along with the possibility of sign him in January following injuries to Luka Modric and James Rodriguez.

Speaking ahead of the Champions League game against Ludogorets, Ancelotti said: "It is true that we are interested in Lucas Silva but also in other players. If we need him we will evaluate after the Club World Cup.

"We have to wait for the Christmas period for the recovery of Modric, Khedira... and then make a decision.

Meanwhile, Silva himself has voiced his dream to play at Real Madrid.