Arsenal transfer news: Gunners dealt blow as £42m midfield target ‘agrees’ move to European giants

Arsenal's search for midfield reinforcements has suffered an unexpected setback ahead of what promises to be another busy summer at the Emirates Stadium.

Mikel Arteta has been linked with several central midfield additions in recent weeks as he looks to add depth and quality to his Premier League-winning squad.

However, a move for long-standing target Morten Hjulmand now appears to be all but over.

Arsenal target Morten Hjulmand agrees personal terms with Atletico Madrid

The Gunners' hopes of signing the Sporting CP captain have taken a hit after reports in Portugal claimed he has reached a preliminary agreement over personal terms with Atletico Madrid.

The Denmark international has been admired by both Arsenal and Manchester City, with the Gunners viewing him as an experienced midfield option capable of strengthening Arteta's engine room.

It's believed that Atletico are now preparing to open formal negotiations with Sporting after agreeing the framework of a deal with the player.

Sporting's stance has not changed, though - while Hjulmand has a release clause worth around €80 million (£70 million), the Portuguese champions are expected to sanction a sale for around €50 million (£42 million) if a suitable offer arrives.

Should the LaLiga giants strike an agreement in that price range, then Mikel Arteta is likely to miss out on one of the midfielders the club have monitored closely throughout the window.

A blow to Mikel Arteta's transfer plans - but there is better out there

Missing out on Hjulmand would undoubtedly represent a setback, particularly given his leadership qualities, defensive intelligence and experience at the highest level.

However, Arsenal are not short of alternatives, and there is a strong argument that a move for Lille wonderkid Ayyoub Bouaddi could prove even more beneficial in the long run.

While Bouaddi would likely cost closer to £60 million, the Morocco international has emerged as one of the breakout stars of the World Cup and possesses the technical ability, composure and ceiling to develop into one of Europe's elite midfielders.

At just 18, he also fits Arsenal's strategy of building a squad capable of competing for years to come.

Hjulmand would have been a smart addition, but if Atletico do complete the deal, the north Londoners still have an opportunity to pivot towards a younger player with arguably an even higher upside.

It would require a bigger financial commitment, but Bouaddi could ultimately prove the more transformative signing for Arteta's evolving midfield.