Both clubs had been looking at the 28 year old central defender whose contract with Wolfsburg expires in June but Sky Sports are reporting that Costa is holding advanced talks with the Spanish club.
Costa had been expected to join Real Zaragoza in the summer but the move fell through unexpectedly allowing Aston Villa and Fulham to re enter the race for his signature this month.
But it appears that Costa will get his move to Spain as his agent Jose Caldeira told Superdeporte:
“The choice lies with the player and it is very clear that his destiny lies in Spain. Ricardo has decided to play in Valencia because La Liga could be excellent for his presence in the national Portugal squad.”
Costa, who who has made 14 appearances for Wolfsburg this season, might just make Portugal’s squad for South Africa with Pepe ruled out for the long term with a knee injury.
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