Arsenal boss Arsene Wenger's summer transfer budget has been slashed.

The Mail on Sunday says Wenger's transfer budget has been cut despite last week's departure of managing director Keith Edelman, who had clashed with the Arsenal manager over summer spending.

Although Arsenal are poised to sign two players this month, Edelman told Wenger a week ago that transfer spending should be limited to £25million.

That budget includes money set aside to try to retain the likes of Alexander Hleb, who has an offer from Inter Milan, and Mathieu Flamini, who is almost certain to join AC Milan next week.

And despite Edelman's abrupt departure after falling out with Arsenal director Danny Fiszman, Wenger will still only be able to bring in three or four players during the close season.