Cape Town - Liverpool and Manchester United look set tot lose out to Real Madrid in the race to sign defender Danilo, according to a Barcelona advisor.
espn report that Barcelona advisor, Charly Rexach, believes Porto defender Danilo is set to join Real Madrid when the transfer window reopens.
Liverpool and Manchester United were reportedly keen on trying to secure a deal for the Brazilian defender as Glen Johnson look set to exit the Anfield club.
Barcelona have also failed in their approach for Danilo, seen as a direct replacement for outgoing Dani Alves.
Rexach believes the transfer race has been run.
"They have told me that the deal is already done, but I do not know for sure," said the ex-Barcelona player.
"[Danilo] must decide that himself."
Danilo has 11 national caps to his name and has already featured 23 times for Porto this season.
The Brazilian arrived at Porto for €13 million in January 2012.