Sport.co.uk understands that Manchester City will turn their attentions to signing Diego from Werder Bremen, as they finally accept that the chances of luring Kaka to Eastlands are minimal.
Juventus are reportedly challenging the Mancunian outfit for the attacking midfielder’s signature but with Bremen slapping a €25m valuation on their Brazilian star it looks as though City will be the only side in Europe with the financial capabilities to make the move possible.
The 23-year-old has been in sparkling form in the Bundesliga this season helping Bremen to a healthy eighth position in the table. Diego currently has a contract running until 2011 but could be ready to quit Germany having plied his trade in the country since 2006.
Having already played for Pele’s former club Santos back in Brazil and had a stint at Porto, in the aftermath of their Champions League victory, the player has pedigree at the highest level and could be a valuable addition to Mark Hughes’ squad as they battle against potential relegation.