Arsenal are competing with Napoli for Bayern Munich midfielder Luiz Gustavo. The London Evening Standard says Bayern Munich are demanding around £17million for the 26-year-old and are relaxed about his possible destination with a variety of clubs from across Europe having registered an interest.
Gunners boss Arsene Wenger is keen on bolstering his midfield to ease the burden on Mikel Arteta, who is the team's only established defensive midfielder.
The fee is not viewed as prohibitive - although Arsenal are believed to value him at closer to £14m - and Bayern are allowing clubs to negotiate with the Brazilian's representatives over personal terms as he looks to improve on his £60,000-a-week wage.
