Arsenal are facing a double transfer whammy.
The Sun says Real are prepared to offer Liverpool £20million plus Argie striker Gonzalo Higuain for Luis Suarez.
Arsene Wenger's Gunners have been chasing both Suarez and Higuain but could now lose out on their transfer targets.
Suarez, though, would prefer a move to Real.
Ironically, Arsenal agreed terms with Higuain more than three weeks ago AND had a verbal agreement in place with Madrid for a £23m deal.