Palermo are trying to extend wonderkid Paulo Dybala’s contract as they fear the Argentine could leave the club next month - with Premier League clubs circling.

The 21-year-old striker is being tracked by Europe’s elite, including Arsenal, Liverpool and Inter Milan, but Palermo want to renew his deal until 2018.

The Sicilian club are likely to place a release clause in the contract, but are now holding out for an even bigger sum after it was revealed last night that they had lost a court case over his 2011 transfer - forcing them to pay an extra £5million to a third party.