The 22-year-old midfielder is considered one of Sweden's brightest talents and has been linked with a number of clubs in the Premier League.
But it appears that Blackburn are currently winning the race to sign Elm, according to reports in Holland.
Blackburn scouts have been highly impressed by his performances in the Eredivisie and the club have now made contact with AZ about a summer deal.
Lazio are also keen on the £6m-rated star, but Elm says he is "fascinated" by the Premier League and wants to try his hand in England.
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