Boro close in on Brazilian star Alves but AZ insist they have a pre-contract agreement

The 26-year-old South American was on Teesside on Sunday and was shown around the Riverside Stadium as Boro tried to persuade him his future lies in England.

It is understood talks progressed to such a stage that they believe they can get their man, who is a Brazil international.

However, the fee remains a problem with the Teessiders not prepared to meet the £14.9million valuation the Dutch media claim his club has placed on him.

Manager Gareth Southgate has been promised chairman Steve Gibson's backing in the transfer market, but Boro have been at pains to stress in recent years that they must balance the books and will not pay inflated transfer fees or wages.

They will continue to work to reach a compromise with Heerenveen, but with AZ Alkmaar insisting they have a pre-contract agreement with the player, there could be some way still to go.

Alves' compatriot Fred is a player over whom Boro have also run the rule.

The 24-year-old Lyon striker has been targeted by Tottenham and Paris St Germain, although his fee - reports suggest Spurs have offered £8.5million for him - could prove a problem.

In addition, both men would need work permits and as Boro found out several years ago with South African Benni McCarthy, that process is not always straightforward.

In the circumstances, Southgate also has other irons in the fire in case he needs to turn to his contingency plans.

He told the club's website, mfc.co.uk: "We are talking to different clubs about two or three players because if we go for only one and that falls down for whatever reason, then we would be left with nothing.

"So all options are open this way."

Southgate has been told he does not need to sell to fund his latest spending mission, although that has done little to quell the rumours over England winger Stewart Downing's future.

The 23-year-old's situation has been a topic for discussion for several weeks with Spurs' interest in him long-standing and ongoing.

However, Boro remain adamant they have not received an offer for their academy graduate amid claims that the Londoners are ready to hand over £8million for his services.

A club spokesman said: "We have received no bids whatsoever for any of our players. We have had no bid for Stewart Downing from Spurs or anybody else."

The Teessiders have made no secret of their intention to try to hold on to Downing, and a bid of £8million would come nowhere near meeting their valuation of the home-grown winger.

Reports today suggest Spurs might be prepared to offer England keeper Paul Robinson as a make-weight in the deal with Mark Schwarzer having entered the final six months of his existing contract.

Downing too has been involved in talks over a new deal despite his current agreement having some two and a half years to run.

However, agent Ian Elliott has rejected an improved offer and the player's continued presence at his home-town club could ultimately come down his desire to stay.

Southgate admitted at the weekend he will be glad to see the back of the January transfer window, although he will do so hoping to have strengthened, rather than depleted, his squad.