Diego had seemed on the verge of a move to Wolfsburg, but it’s now reported Schalke 04 have matched the €16m offer for the Juventus man.
The Brazilian looks set to leave Turin after just one season in Serie A, as the Bundesliga clubs are battling over his signature.
The former Werder Bremen hero was said to be in talks with Wolfsburg following a €16m offer this week.
However, Tuttosport claims that Schalke 04 have intercepted the move with their own equal bid.
Juve hope to spark a bidding war with the price-tag that could well rise to at least €18m.
However, they cannot drag the matter out for too long, as the Bianconeri would then use that cash to step up their bid for Wolfsburg striker Edin Dzeko.
Schalke’s interest can act as an interesting twist to the current situation, as Wolfsburg are so far refusing to release Dzeko as part of the Diego deal.
However, giving them Diego could well prompt the German club into loosening its grip on the Bosnian hitman.
Today Dzeko gave an interview with Bild newspaper in which he bitterly criticised Wolfsburg for “breaking the promises” to release him this summer.