West Ham have made an offer rising to £12m for Nottingham Forest right-back Matty Cash.
The Hammers have bid an initial £10m with £2m more in add-ons - but they face competition from AC Milan and Southampton, among other clubs.
The 22-year-old has had an impressive campaign for Sabri Lamouchi's Championship promotion-chasing side and been watched by several other Premier League clubs.
Cash is on a list of British full-back targets at the San Siro along with Wigan's Antonee Robinson and Hearts' Aaron Hickey.
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Southampton are keen as they look to strengthen in both full-back positions this month, including looking at Tottenham's Kyle Walker-Peters, who is set to be let out on loan. Cash, who is a Forest academy graduate, fits the bill for the south-coast club as they look to restore their reputation for signing and developing young English talent.
How to follow the January transfer window with Sky Sports
Sky Sports will bring you the very latest news from the January transfer market with the return of three shows.
Start your day with Good Morning Transfers at 9am as our team of reporters bring you the latest news and insight. Transfer Talk then follows at midday delivering analysis of the biggest stories. Then join us at 7pm for the definitive round-up of the day's news with The Transfer Show.
Meanwhile, the Transfer Talk podcast will also be back at the turn of the year with more expert analysis from here and across the continent.
And as well as tuning into Sky Sports News, don't miss a thing with our dedicated Transfer Centre blog.