Arsenal are edging closer to landing Montpellier striker Olivier Giroud.

Borussia Monchengladbach had been hoping to tempt the 25-year-old Montpellier and France striker to the Bundesliga in a £12million move.

But their sporting director Max Eberl has now conceded: "We remain true to our policy that we do not throw our money out of the window.

"The problem in our negotiations is that we are in competition with clubs like Arsenal, and top clubs in Germany."