The Sunday Mirror says Arsenal have rejected a £27m bid for Fabregas from Barcelona but the Champions League winners will make an improved offer this week. If that reaches £30m-plus, then Arsenal will accept.
That will leave Wenger with the necessary cash to offer French international Nasri a lucrative new contract.
The pair talked last week, but no decision was made. Nasri has a year left on his current agreement. But the money from the sale of Fabregas, added to the savings on the midfield star's £90,000-a-week wages, will give Wenger much more room for manoeuvre.