Manchester United and Chelsea are set to do battle for the signature of Spanish starlet Sergio Canales as the youngster is set to decide his future in the coming days according to The Daily Mirror. Sir Alex Ferguson and Carlo Ancelotti are both interested in Spain’s new superstar who is earning rave reviews for Racing Santander in La Liga. Canales’ contract runs out in the summer and therefore both United and Chelsea are free to speak to the 18 year old who is set to play for Spain in the World Cup in the summer and become a global star.

Sergio Canales’ father Angel who is also the youngster’s agent has been talking to both the Old Trafford and Stamford Bridge clubs about a potential transfer to the Premier League. United’s representatives met Angel in Spain at the weekend before Angel travelled to London to talk to Chelsea about a potential deal. Wages in the region of £50,000 have been reported but the Premier League duo will also have to fight off interest from Spanish giants Real Madrid who have made an £8 million bid that will see Canales return to Santander until the end of the 2010/11 season.

Sergio Canales is one of the hottest properties in European football right now having impressed in La Liga and led his team to recent victories with some eye-catching performances. Canales has already scored 5 times in 8 La Liga matches for Racing this season, including a brace against Sevilla and the winner at Valladolid. He has also represented Spain at youth levels up to the U19 national side and the attacking midfielder has had scores of scouts watching him in recent weeks. While Man United and Chelsea are both discussing a transfer in the summer, it is not out of the question that Canales will move in January if a firm bid is made by either Premier League outfit.