Former Luton Town boss Nathan Jones is in the market for additions during this month’s transfer window as Southampton shape up for a relegation scrap.
They have zeroed in on Racing Club midfielder Alcaraz and are set to try to lure the 20-year-old to St Mary’s this month.
Alcaraz is considered to be a hugely bright prospect within Argentine football, but Southampton may well lose out.
Benfica are also alive to the midfielder’s talents and are firmly in the mix to sign him.
It is suggested there is a strong possibility that the Argentine takes his first steps into European football by joining the Portuguese giants.
Benfica could lose Argentine midfielder Enzo Fernandez to Chelsea during this month’s transfer window and as a result would be flush with cash to push through a deal for Alcaraz.
The midfielder is tipped to cost above £12m and Racing Club have him locked down on a contract which runs until 2026.