Hamburg midfielder Walace is the subject of interest from the Premier League, with Leicester City and Everton both said to be eyeing up a move, according to The Mirror.
The Brazilian only joined the German side from Gremio in January but is not expected to remain in the Bundesliga for long.
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Despite beating off stiff competition to secure Walace’s signature for a fee of £8 million, Hamburg are bracing themselves for a flurry of bids in the summer for the promising holding-man.
The 21-year-old made his professional debut for Gremio in 2014 and went on to make 115 appearances for the South American outfit.
He made his bow for the senior Brazil team in June 2016 and was part of the triumphant under-23 squad at the Rio Olympic Games just two months later.
Walace has already made a significant impression during his short time in Germany, scoring on his league debut in the convincing 3-0 win over RB Leipzig last Saturday.
If his form continues at its current rate, any club wishing to prize him away from Hamburg over the next transfer window will have to pay a premium.
Leicester in particular are in need of a midfield anchor having failed to adequately replace N’Golo Kante after he left for Chelsea last July, although any bid for Walace would depend on whether they are still a Premier League side at the end of the season.