Fiorentina will reportedly sell Pedro to Gremio for €11m plus bonuses, with Jacob Rasmussen heading to FC Erzgebirge Aue, as Patrick Cutrone comes in from Wolves.

The Viola are transforming their squad under new coach Beppe Iachini after a deeply disappointing first half to the season.

Cutrone is due to arrive on an 18-month loan with obligation to buy from Wolverhampton Wanderers, which means Pedro can leave.

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Gremio have confirmed their interest in Fiorentina striker Pedro but ruled out a swap deal involving defender Walter Kannemann.

Fiorentina were reported to be keen on exchanging Pedro for Kannemann, given the Brazilian’s struggles to adapt to Italian football and their own frailties at the back.

However, Gremio President Romildo Bolzan told Correio do Povo: “Kannemann is a cornerstone of the team and won’t be leaving.

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Flamengo and Gremio have both reportedly joined the race to sign Fiorentina striker Pedro.

Globo Esporte reports Flamengo want to take Pedro on a year-long loan, similar to their deal for Inter forward Gabriel Barbosa.

It comes after a year that saw the Rubro-Negro crowned champions of South America - but not before splashing out on new players and a new coach.

However, the outlet adds they face competition from rivals Gremio, who could capitalise on Fiorentina’s interest in their defender Walter Kannemann.

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Fiorentina have reportedly contacted Walter Kannemann’s representatives in an attempt to bring the Gremio defender to Florence.

Calciomercato.com reports that Fiorentina are working on a deal to convince the Brazilian team to let their 28-year-old Argentine leave the club.

Fiorentina were also linked with the player during the transfer window last summer and he would still be available through a €10m release clause.

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Milan have reportedly seen a bid of just under €30m for Gremio and Brazil winger Everton Soares rejected.

Milan have gone back in for Everton after being priced out of a move for Atletico Madrid forward Angel Correa.

According to Globo Esporte, Milan made the offer on Friday via email, but it was returned to sender as Gremio want more money.

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Milan have reportedly reopened talks for Gremio and Brazil winger Everton Soares.

According to Gianluca Di Marzio, Angel Correa remains Milan’s top target, but they have yet to meet Atletico Madrid’s valuation, which is in excess of €50m.

Consequently, Di Marzio claims that while the Rossoneri remain hopeful a deal can be agreed for Correa, they have momentarily checked back in for Everton.

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Roma and Fiorentina are on high alert after Gremio defender Walter Kannemann’s agent flew in to Italy for meetings.

According to Calciomercato.it, the representative is hoping to work out a deal for his move to Serie A.

Among the clubs known to be interested in the 28-year-old are Roma and Fiorentina.

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Atalanta have reportedly opened talks with Gremio over a possible deal for striker Luan.

According to Globo Esporte, Atalanta are ready to add Luan to their attacking arsenal and the situation could develop quickly.

The 26-year-old has scored 72 goals in 274 appearances for Gremio in all competitions and has two caps for Brazil, while winning Olympic gold with his country in 2016.

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Napoli director Cristiano Giuntoli admits interest in Everton Soares and James Rodriguez, but also warns “some names haven’t hit the headlines.”

The Partenopei faced Barcelona in Ann Arbor this evening for the second game in the inaugural La Liga-Serie A Cup, but the focus for the media remained the transfer market. With both Napoli and Barca looking for trophies this season, tips on the best betting strategy for the campaign can be found here. 

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Gremio have denied reports that Napoli made an offer for in-demand Brazil winger Everton Soares.

Napoli were said to be in talks for Everton, with Calciomercato.it claiming they had already tabled a €30m bid for the ex-Milan target.

However, Gremio President Romildo Bolzan told Tuttosport: “There’s no offer from Napoli for Everton.

“To buy him, someone needs to satisfy both Gremio and the player. That hasn’t happened until now.”

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