ACCORDING to reports Arsenal continuing their chase for Brazilian under-20 international Diogo despite already having two bids rejected, writes Alex Sexton.

Arsene Wenger is still keen on the youngster but may have to persuade his board to release £17 million for a player touted as the next Brazilian wonderkid.

If a deal can be struck then he would become the second player to leave Sao Paulo based club Portugesa for European football in a year. Last season AC Milan spent around the same figure to capture Alexandre Pato and Wenger knows he will have to spend big for his signature.

Reports have claimed that the Gunners had a bid of around £3 million rejected in the winter transfer window for a player who scored 18 goals in the Brazilian championships last season.

Portuguesa president Manuel da Lupa has remarked: "Diogo is better than Pato, Arsenal have come twice to talk about him, but they never wanted to pay what Diogo is really worth."

The 20-year-old is expected to partner Pato in attack for Brazil in the upcoming Olympic football tournament and he has already stated that if a top European club were interested, it would be a dream move.

Wenger is concerned that Diogo would not be able to gain a work permit and if he did sign him. He would have to be prepared to loan the striker out to a Spanish side for two years in order to gain a European passport, just as he has done with Carlos Vela.

The forward's representative, Rodrigo Righetti, said: "Diogo would love to play for Arsenal. But for now, he must wait for an offer that suits both the club and himself."