Arsenal are interested in signing Real Madrid midfielder Dani Ceballos on loan, according to Sky sources.
North London rivals Tottenham are also in talks with Madrid over a potential transfer for the Spain international.
The 22-year-old would prefer a loan move to a permanent deal as he believes he can still make an impact at Real in the future.
Ceballos is keen to secure regular game time after struggling to cement a first-team place at Madrid, since joining the club on a six-year deal from Real Betis in 2017.
Sky sources understand Arsenal are also close to completing deal to sign Saint-Etienne defender William Saliba.
It is understood that Arsenal are negotiating a deal which would see the 18-year-old loaned straight back to the Ligue 1 side next season, with the defender joining Arsenal’s squad for the beginning of the 2020/21 campaign.