The 19-year-old has already made 54 senior appearances for Flamengo in all competitions, scoring nine goals, and he is said to have caught the attention of a number of European clubs this summer.
Both Chelsea and Newcastle United have been credited with an interest in Franca, but the Evening Standard claims that Crystal Palace are close to completing a £26m deal to sign the Brazil Under-20 international.
The report adds that the Eagles have agreed to pay an initial £17m for Franca plus £9m in add-ons, and he is scheduled to travel to London this week for his medical ahead of finalising a move to Selhurst Park.
Palace boss Roy Hodgson is in the market for attacking reinforcements following the departure of long-serving winger Wilfried Zaha to Galatasaray on a free transfer, while the future of Chelsea-linked Michael Olise is believed to be uncertain.
Dropping down into the Championship and Watford have expressed their interest in free agent Alfredo Morelos, according to a report.
The 27-year-old has been without a club for over a month since running down his contract at Scottish giants Rangers, where he scored 124 goals in 269 appearances across a six-year period.
The Athletic reports that Morelos has been considering a possible move to Saudi Arabia, but he is now also pondering a switch to Watford.
The report adds that the Hornets are keen to recruit a new forward this summer and they are reviewing their options before making a formal offer.
Manager Valerien Ismael has seen Joao Pedro, Ismaila Sarr, Britt Assombalonga and Ashley Fletcher (on loan) all depart the club this summer, while Rhys Healey is their only notable
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