Arsenal are said to be working to finalise the signing of Atletico Madrid forward Julian Alvarez before the start of pre-season.
The Gunners have long identified Alvarez as a priority target for Mikel Arteta, and cooling interest in the Argentina international could prompt the North London side to make their move.
The Independent reports that despite strong interest from Spain earlier in the window, Barcelona and Real Madrid have been ruled out of contention, with Atletico refusing to sell to their direct rivals.
Paris Saint-Germain previously monitored the situation, but the European champions are believed to have since shifted their attention elsewhere.
Arsenal’s 'pursuit' faces £10m gap with Atletico Madrid
Arsenal have pursued Alvarez for several months, although negotiations have been complicated by a difference in valuation.
The above source suggests that the North London club are reluctant to exceed £90m, while Atletico are holding out for a figure above £100m.
Sporting director Andrea Berta is leading talks with his former club in an attempt to break the impasse.
While Alvarez is understood to be open to the move, his preference had initially been to remain in Spain, but the stance of Atletico’s board has narrowed his options.
Potential alternatives and World Cup delays factor into Arsenal’s plans
Arsenal have also considered alternatives such as PSG’s Bradley Barcola, but the French champions are determined to keep the young forward for now.
The ongoing World Cup has delayed progress on several high-profile deals, with Arsenal still hopeful of securing Morgan Rogers in a separate move.
The shifting transfer landscape may bring further developments once the global showpiece concludes, but for now, Arsenal’s focus remains on Alvarez.
Alvarez’s addition would offer Arsenal a proven match-winner, as demonstrated by his stunning goal in Argentina's 3-1 quarter-final win over Switzerland.