Arsenal are hopeful of concluding talks with Borussia Dortmund for Greek defender Sokratis Papastathopoulos.
The London club have offered £12million for the 29-year-old centre-back with Dortmund holding out for £15.7million.
Recruitment director Sven Mislintat is keen to give Unai Emery options to work with in defence following the achilles injury suffered by Laurent Koscielny.
Talks are also ongoing with 34-year-old Swiss international right-back Stephan Lichtsteiner, who is available on a free after leaving Juventus.
Lichtsteiner was also a target for Dortmund but his agent and brother are understood to have a strong relationship with Mislintat.
Arsenal have a limited budget but will also look to generate funds with sales. They retain interest in Freiburg's Caglar Soyuncu and Jonny Evans of West Brom while they have made enquiries for midfielder Dennis Praet at Sampdoria and Lorenzo Pellegrini of Roma. A move for Sevilla goalkeeper Sergio Rico has also been discussed.
