The Argentine joined the Primeira Liga giants from Boca Juniors last summer and he has been revelation from the number six role.

The 22-year-old has been brilliant with his distribution and ability to win duels. He could leave Porto at the end of the season.

Liverpool are already keeping tabs on his performances but it is claimed that City could go head-to-head to land his signature.

The Cityzens consider him as a potential replacement for Kalvin Phillips , who is expected to be sold in the next transfer window .

Liverpool , on the other hand, view him as a potential candidate to bolster the defensive midfield department alongside Wataru Endo .

Varela currently has a release clause worth €70 million in his contract and Porto are likely to hold out for a similar fee this summer.

The Reds could have an advantage in the pursuit of the Argentine, considering they previously signed Luis Diaz from Porto.

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