It has been reported that Leeds, Arsenal, Watford and Southampton all want to sign the 19-year-old forward.
However, according to the report, West Ham ‘are in the driving seat’, with the Hammers having already made an approach for the Portuguese youth international.
It has been claimed that the London club have already held talks with the teenager’s representatives.
Paulo has a release clause of £40 million, according to the report in TEAMtalk.
While Paulo is very highly rated and has a bright future ahead of him, £40 million for a 19-year-old with no experience of first-team football is too much to pay for any club.
It is clear that the Portuguese is one for the future and is not ready to make an impact on the first team just yet.
What West Ham and Leeds want is a forward who can make an impact now, and spending £40 million on Paulo does not make much sense, especially amid the current economic climate, with both clubs likely to fight for survival in the Premier League this season.