The Citizens have been monitoring the 19-year-old for a long time, with reports surfacing about their interest last summer. The Gunners have also been keeping tabs on the Argentine Under 20 international in recent weeks.
However, it appears United are the latest club to take a keen interest in Almada with the Red Devils being the most proactive in trying to sign him by holding formal talks.
The midfielder has a release clause of €25m (£23m) but United are said to be hopeful that an agreement can be reached for approximately €18m (£16m).
Whether that will bee enough, it remains to be seen. Velez had reportedly decided that they won’t accept a figure below the buyout fee and City will be hoping their Manchester rival’s attempts at signing Almada end in failure.