Stoke City are keeping close tabs on Brazil's Olympic champion Walace, according to reports in Germany.
The Potters reportedly sent scouts to watch the 21-year-old midfielder in action for Hamburg against Freiburg at the weekend.
Walace only joined the Bundesliga club in January from Gremio in a £9million deal, but that has apparently not put off Stoke the idea of landing Walace this summer.
He has scored one goal in his first two Bundesliga appearances for his new club following his impressive performances at the Rio Olympics, which saw Brazil beat Germany on penalties in the final to claim gold.