The 22-year-old Uruguay international is one of several potential targets with Unai Emery keen to increase competition throughout his squad.

Ugarte, who joined Sporting from Familicao two years ago, is represented by Jorge Mendes and is thought to have a £55million buy-out clause in his contract.

Villa’s recruitment department, soon to be bolstered by the arrival of Mateu Alemany from Barcelona in a senior role, is also focusing on forward areas with moves for Real Madrid’s Marco Asensio and Tottenham’s Giovani Lo Celso being considered.

Asensio is out of contract next month and ideally wants to remain in Madrid but Emery will try and convince him to switch to the Premier League.