Fiorentina are keeping close tabs on talented footballers Jason Denayer and Walace, according to Il Corriere dello Sport.
Viola officials did well to get rid of a number of high earners this summer and having seriously improved the financial situation at Artemio Franchi, they plan to splash some cash in the winter.
Il Corriere dello Sport has learned that Fiorentina have all but agreed to recruit holding midfielder Walace from Gremio for a fee believed to be between €6m and €7m.
The 20-year-old has already shown a great deal of potential, making 46 league appearances for the Brazilian giants.
At the same time, Fiorentina continue to keep close tabs on Manchester City defender Jason Denayer, who was recently loaned to Galatasaray.
The Belgian was in excellent form during a season-long stint with Celtic, featuring in 29 SPL games and scoring 5 goals, and Viola aim to make a move on him when the youngster returns to the Etihad next summer.