As Sir Alex Ferguson steps up his efforts to find a suitable replacement for Cristiano Ronaldo, Costa's representative, Cesar Bottega confirmed that the two clubs have made contact about the 18-year-old.
But he added that with a reported $21million (£13.5m) get out clause in the player's current contract, not to mention the fee Gremio president Duda Kreoff is holding out for, United look likely to be disappointed.
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'At the end of the Brazilian championship, Douglas will be worth at least twice what he's worth now.'
It is not the first time United have shown an interest in signing Costa. Former centre-back Jaap Stam has been monitoring the player for a number of months which prompted speculation of a move back in April of this year.
Meanwhile, United are reported to have agreed to a deal that will see Corinthians' defender Dodo arrive at Old Trafford in January for £5.5 million. With their Brazilian squad members rapidly rising in number, 17-year-old Dodo will be the fifth to arrive from the South American nation in recent years.
Anderson arrived from FC Porto in 2007, twins Rafael and Fabio da Silva both arrived from Fluminese last summer and at the same time Rodrigo Possebon moved from Internacional.
With United providing a stepping stone into the Premier League for such a significant number of Brazilians the club has come under fire from Carlos Alberto - the country's World Cup winning captain from 1970.
According to the Times, Alberto has accused United of "raping Brazilian football" while urging Fifa to step in to protect the country's young talent from the lure of Europe's biggest clubs.
'It is disgraceful United are allowed to rape Brazilian football,' he said. 'The big teams have the money and can take our best players. It is a big problem in Brazil.
'The clubs cannot keep hold of them, if they are good young players, because they can make much more money in other countries. Fifa must do something. They have an obligation to save football. If we could have conditions where we could keep these players in Brazil, it would be much better for us."

Darron Gibson is prepared to put his World Cup dream on hold to make it at Manchester United.

The 21-year-old would almost certainly be part of Giovanni Trapattoni's squad if the Republic of Ireland made it to South Africa next year, providing he could secure regular top flight action.

Everton are among the clubs interested in acquiring Gibson, who made 14 appearances for the Red Devils last season.

However, even though he realises his chances at Old Trafford are likely to be limited, Gibson wants to sign another contract with Sir Alex Ferguson's men.

"My contract is coming to an end so, hopefully, at the end of the month I'll be signing a new one," said Gibson.

"My current deal ends at the end of next season but, normally, a player would enter into new contract talks at the end of this month.

"I've been told that a few clubs had expressed an interest in signing me, but I want to give it a good push and have a proper go at it next season before I decide to go anywhere else."

Gibson has turned in a series of eye-catching displays for United and fired home an excellent matchwinner at Hull on the final day of last season.

Yet it is difficult to see him forcing his way into a midfield that includes Michael Carrick, Anderson and Darren Fletcher, even if Paul Scholes is expected to retire in 12 months' time.

SIR ALEX FERGUSON is ready to splash £25million on Lyon's Karim Benzema after finally admitting defeat over keeping Carlos Tevez.

Manchester United officially ended negotiations with Tevez's representative Kia Joorabchian - and have targeted France striker Benzema. Lyon have admitted that a £25m offer would be enough to tempt them.

Tevez rejected the chance to stay at Old Trafford after United made him an offer on June 3. Tevez and Joorabchian asked for more time to consider the deal but United's chief executive, David Gill, withdrew the offer on Friday night.

That leaves Manchester City clear favourites to land the Argentina striker - although Chelsea have also expressed an interest.

With Tevez no longer part of their plans, United will turn to striker Benzema. Lyon have fought a long battle to keep their star player but are now ready to bow to United's financial muscle.

Benzema has been linked with Arsenal, Real Madrid and European champions Barcelona, but United are now in pole position to sign him.

Bernard Lacombe, the personal advisor to Lyon president Jean-Michel Aulas, has revealed they are anticipating a bid from Fergie.

Lacombe said: "Benzema is with us, but nobody knows what will happen. We didn't think Michael Essien would leave at the time, but when Chelsea arrived with the cheque . . .

"If Manchester United, who as we know have plenty of cash available, want to buy Benzema, then what can you do?"

Sport of the World broke the news of City's interest in Tevez in September last year and also told you first that Ferguson had singled out Benzema as his replacement.

Benzema scored 17 times for Lyon last season making him the third in the French League goal charts. He has 24 international caps and six goals and played for his country at Euro 2008.

United have confirmed that Carlos Tevez is leaving the club.

United were willing to pay the £25.5m to turn the striker's two-year loan move into a permanent five-year deal but Tevez, 25, has decided to move on.

"Disappointingly, his advisors informed the club that he does not wish to continue playing for Manchester United," read a United statement.

"The club thanks Carlos for his services over the last two seasons and wishes him good luck for the future."

Tevez became a crowd favourite during his time at the Old Trafford club and helped the side win the last two Premier League titles as well as the 2008 Champions League trophy.

But he has joined Cristiano Ronaldo in wanting to exit the club, with his final appearance being as a substitute in United's loss to Barcelona in the 2009 Champions League final.

United said they were willing to make Tevez "one of its highest paid players" but were told by the Argentine's advisors, who own the player's economic rights, that he would not be accepting the offer of their deal.

Manchester City are now favourites to sign him but he has also been linked with Chelsea and Liverpool.

City's financial clout makes them the frontrunners as their manager Mark Hughes tries to put together a squad capable of challenging the top four of United, Liverpool, Chelsea and Arsenal.

Tevez scored 15 goals last season but was frustrated at continually finding himself on the bench for key games and was wary of the issue ahead of the 2010 World Cup in South Africa.

Despite the affection of United's fans, he has reportedly complained of a lack of respect from the club and his treatment at their hands.

Tevez's adviser Kia Joorabchian recently explained that United's failure to sign his client up permanently last summer and in January 2009 were behind Tevez's complaints.

His departure now leaves United manager Sir Alex Ferguson without two of his most influential players of recent seasons.

Wigan midfielder Antonio Valencia has been linked with a move to United as the club try to replace the duo.

GREEDY Carlos Tevez has told Manchester United: Make me your highest-paid player — or I go.

The Red Devils have agreed the £26million asking price to make the Argie striker’s loan move permanent.

But they have still to match the personal terms of £110,000 a week that stars Rio Ferdinand and Dimitar Berbatov earn.

Tevez, 25, has been on £95,000 a week since joining Alex Ferguson’s side but his loan ends at the end of this month.

He is on holiday in Buenos Aires where he has also been contacted directly by new Chelsea boss Carlo Ancelotti.

SunSport revealed details of that phone call this week and how impressed Tevez was with new Blues' boss Ancelotti's personal approach.

Moneybags Manchester City are also interested in grabbing the hitman as boss Mark Hughes bids to build a team capable of giving the Premier League's Big Four a bloody nose.

That threw United into panic, yet they could have had the deal wrapped up months ago had they wanted to.

Tevez was frustrated with the Red Devils last season for leaving him in the dark over his future. Now the player and his agent and co-owner Kia Joorabchian are happy to keep them waiting on their decision.

Meanwhile, United starlet Darron Gibson insists Cristiano Ronaldo, 24, will not be missed.

Republic of Ireland midfielder Gibson, 21, spoke out after the Portugal man's departure to Real Madrid.

He said: "A fee of £80m was simply too much to refuse. But we've a great squad and I don't think we'll miss him. There are a few that can step in and do as well."