Bayern could swap Gustavo for Neuer

Bayern Munich could be set to trade Brazilian midfielder Luiz Gustavo for Schalke 04's Germany goalkeeper Manuel Neuer in a high-profile transfer, according to a report here on Thursday.

German television channel Sport 1 reported Schalke coach Ralf Rangnick, a fan of Gustavo, is eager to bring the defensive midfielder to Schalke and he could be part of the deal which sees Neuer, 25, head to Bayern.

Before joining Schalke in March, Rangnick resigned as Hoffenheim coach in January after Gustavo was sold to Bayern by the club from the south-west of Germany.

Neuer has already told Schalke he will not extend his contract when it expires in 2012 and the Royal Blues could risk losing him on a free-transfer if he sees out his contract.

According to Sport 1, Bayern could offer Schalke both 19 million euros (28m US dollars) and Gustavo, 23, for Neuer.

Munich's director of coaching Christian Nerlinger refused to confirm the report and said figures quoted in the German media in excess of 25 million euros for signing Neuer are 'not realistic'.

Bayern have given veteran Germany shot-stopper Hans-Joerg Butt a year's extension and Nerlinger said the Bavarian giants are relaxed about their goalkeeping situation.

"We have a stable solution - with or without Manuel Neuer," said Nerlinger.

"We have had no qualms about going into the new season with Jorg Butt as the number one."

Nerlinger did confirm Bayern are interested in signing Germany defender Jerome Boateng from Manchester City.

And he said Bayern are set to open negotiations with second-division Energie Cottbus for their top-scoring striker Nils Petersen, 22, who has scored 24 goals in 31 league games this season.