The chiefs of both Barcelona and Paris Saint-Germain were spotted emerging from a meeting in Madrid, with the futures of Adrien Rabiot and Ousmane Dembele understood to be the main point of discussion.
The meeting between Barcelona's Josep María Bartomeu and PSG's Nasser Al Khelaifi in the Spanish capital was spotted by AS as the pair convened with several presidents of Europe's top clubs for the European Club Association.
The Spanish report claims the pair both emerged from the Gran Melia hotel, where the two clubs are understood to be in the midst of ongoing negotiations - with Rabiot a target of the Catalan giants and Dembele of interest to the Parisians.
Rumours of Barcelona's pursuit of Rabiot, 23, have been circulating across the media throughout the summer as Ernesto Valverde seeks further reinforcements in midfield following the departures of Andre Gomes, Andrés Iniesta and Paulinho.
The Frenchman recently turned down a new deal with PSG and with his current contract expiring next summer he could leave next year on a free transfer if the Ligue 1 champions do not sanction a sale before the end of the month.
Both parties appear to be in a standoff, however, as the report claims the midfielder has been warned that he could watch the season unfold from the sidelines if he does not extend his contract, but Rabiot has remained firm in his stance.
Moreover, Barcelona are understood to be willing to listen to offers for Dembele despite parting with over €100m to land the player last year, with PSG sounding out the possibility of landing the 21-year-old.
With time running out to secure a deal and a clear disparity in potential transfer fees, any deal would need one side to blink first before the end of the month, if reports are to be believed.