Real in battle to sign Rui Costa

Real Madrid are set to lock horns with Juventus, AC Milan and Parma for the signing of Fiorentina midfielder Manuel Rui Costa.

The Portuguese ace is being closely monitored by the Spanish champions who have him in mind should they fail to land Valencia's Gaizka Mendieta this summer.

The player was reportedly close to sealing a move to Milan on Thursday but according to sources in Madrid, Real sent a fax to Fiore's headquarters as well expressing their interest in the 29- year-old former Benfica man.

Parma, however, have launched a double raid on Fiorentina for Rui Costa and keeper Francesco Toldo and Fiore's president Vittorio Cecchi Gori, who needs to raise $US 70million to avoid bankruptcy, is believed to have enthusiastically accepted the offer.