Arsenal 'are closing in on the £40million signing of Leicester's Youri Tielemans' - but the Gunners could face competition from Real Madrid.
The Gunners want to bolster their midfield options as they return to European competition next season and the Belgian has emerged as a prime summer target.
The Sun report that both Arsenal and Tielemans are increasingly confident he will be walking out at the Emirates Stadium next season.
However, Real could still reportedly swoop if Mikel Arteta's side fail to qualify for the Champions League.
Arsenal currently occupy fourth spot but are engaged in a tussle with their north London rivals Tottenham, with the two sides set to meet on Thursday.
Spurs drew 1-1 at title-chasing Liverpool on Saturday night, affording Arsenal the chance to move four points clear if they beat Leeds on Sunday.
Arteta regards Tielemans, 25, as an upgrade on Granit Xhaka and Mohamed Elneny in the midfield area and Leicester are increasingly resigned to losing their man.
Tielemans' contract at the King Power Stadium expires next year, and he has rejected offers of an extension, meaning the Foxes will need to cash in now.
Manchester United have been linked with the Belgian but won't be in the Champions League next season, making them less attractive to players.
Xhaka's future at Arsenal remains uncertain, while Elneny is out of contract this summer.
Tielemans initially signed for Leicester on loan from Monaco in the 2018-19 season before completing a permanent £32m move.
He has scored 24 goals in 154 appearances overall for the club, the highlight being his memorable long-range goal to defeat Chelsea in last season's FA Cup final.
Leicester's hopes of winning a first European trophy ended with defeat to Roma in the semi-finals of the UEFA Europa Conference League on Thursday.