Newcastle United have expressed their interest in signing Real Valladolid right-back Ivan Fresneda.
The Magpies have made a stunning start to the season and could be set to improve their squad further.
However, they face competition from Juventus among others for Fresneda, with Valladolid expected to sell for around £10million.
Premier League leaders Arsenal have also been monitoring the Spanish Under-19 international.
Fresneda came through Real Madrid's academy before leaving in 2018 to join Spanish side Leganes, before joining Valladolid two years later.
The 18-year-old made his LaLiga debut in September in a 2-1 loss to Girona, and he has made ten appearances for Valladolid's senior side.
Fresneda has also made four appearances for Spain's Under-19s side.
Speaking about transfers in his pre-match press conference ahead of their clash with Leeds today, Howe said: 'If you're looking to improve the team, the starting XI as it is if we have no injuries, then that is a challenge in the market currently.
'Again, with an unlimited budget, that might be possible – not that we necessarily have a budget at the moment – but with Financial Fair Play looming and with those restrictions, it's almost impossible.
'Then you're looking at the squad and can you improve the squad? Now that's a different question.
'Anything we do do in January then potentially harms us for the summer. There is always another window coming up and what you don't want to do is handcuff yourself for future windows, so there's a lot to consider.'