Arsenal scouts have watches Moutinho in action on several occasions.
Arsenal boss Arsene Wenger has insisted he will be making one or two “super-class” signings this summer and Moutinho is believed to be one of them.
The midfielder made his international debut for Portugal aged 18.
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Liverpool have unveiled their new home kit for next season, sticking with the hugely popular retro styling of the current shirt.
The reputation of the Premier League means it is the most popular and one of the most watched leagues in the world.