The Gunners are being pushed by Mikel Arteta to sign a new striker this summer.
The Spaniard is pleased with the contributions of Gabriel Jesus and Eddie Nketiah this season but feels his squad would benefit from a more physical and powerful forward.
Juventus striker Dusan Vlahovic has been highlighted as the club’s first-choice target, while Everton’s Dominic Calvert-Lewin is also on Arsenal’s shortlist.
Arsenal’s hunt for a new striker could be accelerated if they let Folarin Balogun depart at the end of the season.
The 21-year-old has been in scintillating form in France while on loan at Reims, scoring 18 goals in Ligue Un.
He is set to return to North London in the summer but has informed Arsenal that he will push for a move away unless given a guarantee of first-team action by Mikel Arteta.
The Gunners have made it clear that a new and improved contract could be offered to Balogun if he does decide to stay and fight for his spot in the side.
Should Balogun decide that he wants to leave, Arsenal will only sell him permanently for £30million or more.
There is already an abundance of interest around Balogun both in the Premier League and across Europe.
Red Bull Leipzig, Marseille, Lyon, Villarreal and Sevilla have all registered interest, while Brentford, Wolves, Everton and Crystal Palace are also monitoring his availability.
MAN CITY
Manchester City are very confident that they now lead the race to sign Jude Bellingham this summer.
Liverpool were strong favourites to land the 19-year-old Borussia Dortmund star, but the Merseyside club dropped out of the race earlier this week.
City have a very good rapport with Dortmund after agreeing a deal for Erling Haaland last summer, and Bellingham is also understood to be intrigued by the opportunity to reunite with the Norwegian striker.
City are prepared to pay the £100million-plus price tag set by Dortmund, and they are confident that they have a financial advantage over fellow frontrunners Real Madrid.
Bellingham has been offered a contract by Dortmund to stay put in Germany for another year, and the England international has not ruled out signing it.
City are already preparing a record-breaking deal to sign Bellingham, and are waiting to hear his final decision before submitting their bid to Dortmund.
There are further midfield changes expected at City this summer, with club captain Ilkay Gundogan now expected to leave at the end of the season to join Barcelona.
The Spanish giants have been long-term admirers of the 32-year-old, and are ready to offer him a deal when his contract expires this summer.
From my understanding, Gundogan is excited about a move to Barcelona and it now seems inevitable that he will accept their proposal.
City have also offered Gundogan a deal to stay in Manchester, but Pep Guardiola does not want to stand in his way should he want to leave.
Arsenal and Paris Saint-Germain are also monitoring Gundogan’s situation but remain considerably behind Barcelona.
Barcelona have also been long-term admirers of Bernardo Silva, but signing Gundogan has now made a deal for the Portuguese playmaker impossible, with City insisting they will not lose both stars in the same window.
The Premier League champions have put a £70million asking price on Silva to try and fend off any summer bids.
LIVERPOOL
The Reds are still on the lookout for midfield signings despite dropping out of the Bellingham race.
Jurgen Klopp spoke to the Liverpool board and recruitment team and they decided that the £100million package required to sign Bellingham would be better spent on multiple signings addressing a number of positions.
Liverpool are prepared to re-enter the race for the 19-year-old next summer if he chooses to stay at Dortmund for another season.
But this summer, the Merseyside club have turned their full attention to Brighton star Alexis Mac Allister.
The 24-year-old World Cup winner is seen as a cheaper option to Bellingham, and Liverpool’s confidence in signing him was boosted following his father’s comments in the media.
Mac Allister’s father said “it is most likely that Alexis will already be playing in another team next July.”
Man United and Chelsea are also interested in Mac Allister’s signature, but Liverpool are determined to beat their rivals to his signature.
Brighton have put a £60-70million price tag on Mac Allister.
Klopp is a huge admirer of Mac Allister’s versatility, with the German coach excited by the creativity he could inject into his Liverpool squad.
Mac Allister makes up part of Liverpool’s five-player midfield shortlist for the summer, with Mason Mount, Conor Gallagher, Joao Palhinha and Nicolo Barella also on the club’s radar.
Moises Caicedo is no longer being considered by Liverpool, with the price tag deemed too much amid big interest from Arsenal and Chelsea.
It is understood that Barella will push to leave Inter Milan this summer if they miss out on Champions League football, and that could provide Liverpool with an opportunity to pounce.
Liverpool scouts have thoroughly watched the Italian midfielder this season.
MAN UNITED
A new centre-back is becoming a top priority for the Red Devils this summer.
Harry Maguire, Phil Jones, Victor Lindelof and Eric Bailly all face an uncertain future at Old Trafford and Lisandro Martinez faces a race to be fit for the start of the new season after fracturing his foot against Sevilla last week.
Defensive reinforcements could be crucial for Erik ten Hag, and Monaco centre-back Axel Disasi has emerged as a top target.
The 25-year-old is into the final two years of his contract and Monaco are open to selling him if their £40million valuation is met.
United have sent scouts to watch Disasi multiple times this season and reports have come back positive, with the French international considered a star with huge potential.
Disasi has risen to the top of United’s shopping list this summer, with Napoli’s Kim Min-Jae the other defender on the club’s radar.
A marquee striker remains a top priority for the club, but a new centre-back is also being emphasised by Ten Hag.