Manchester United target Lucas to negotiate new deal after Olympics

Brazil youngster Lucas Moura is set for a new contract at São Paulo after the Olympics, after Manchester United's approach prompted the Brazilian side to open negotiations.

Lucas, 19, was thought to be close to joining the Red Devils, but the two sides could not agree on a price for the attacking midfielder, with São Paulo demanding €40 million.

The club's vice-president, Joao Paulo de Jesus Lopes, has now confirmed that the club intend to offer the player an improved deal when he returns after the Olympic games.

"When there was a round of negotiations with Manchester United the situation changed a bit and Sao Paulo started to admit the possibility of changing his contract," Lopes told Globo Esporte.

"But that will only happen after the Olympics as the presence of the player will be needed. We won't change the way we do things."

To further enhance the feeling that Lucas will remain in São Paulo this summer, the club named Lucas in their 25-man squad for the Copa Sudamericana on Wednesday.

The arrival of August also saw a significant change in Lucas' ownership situation, with the player's ownership of his economic rights now at 30%, up from 20%. The package in his existing contract also included a slight wage rise.