Atletico Madrid have confirmed that they have reached an agreement to sign Arsenal striker Jose Antonio Reyes for a fee of around £8.1million.
The Spanish international spent last season on loan at Real Madrid and was desperate not to return to London, where he failed to settle.
After days of discussions with Atletico, it is being reported that Reyes will sign a four-year deal.
Arsenal are considering an £11million bid for Croatia international midfielder Luko Modric.
The 21-year-old, who plays for Dinamo Zagreb, caught the eye of Arsene Wenger when he played against the Gunners last summer.
Shakhtar Donetsk have already have already had an offer of £10.5million rejected.
Obafemi Martins has pledged his future to Newcastle United.
The Nigerian striker has been linked with a move to Arsenal and rumours increased when it became public knowledge that the 22-year-old has a £13million get-out clause in his contract at St James Park.
“I will keep my mouth shut. I am not going anywhere, I am still a Newcastle player,” he told the Magpies’ website.
West Ham United have completed the signing of Freddie Ljungberg from Arsenal for a fee which could rise to £3million.
Ljungberg was Arsenal’s longest serving player after joining the club in 1998 for £3million from Halmstads, but has decided to follow Thierry Henry in leaving the Gunners.
Sir Alex Ferguson is expecting the Premiership to be a four-way title race this season.
The Manchester United boss feels that the main challenge for their crown will be coming from Arsenal, Chelsea and Liverpool.
Arsene Wenger has denied press reports that he is interested in bringing Nicolas Anelka back to Arsenal.
The Gunners boss has claimed that he is not in the market for another striker after already signing Eduardo da Silva from Dinamo Zagreb and will not be making a move for Anelka who is currently playing for Bolton Wanderers.
Arsenal fans have been left disappointed after a group of Boca Juniors fans tricked the international media into thinking that the Gunners were about to sign Rodrigo Palacio.
A blog run by fans of the Argentinian side made up the rumour that Palacio was set to join the Premier League side this week.
