Arsenal are lining up a knockdown £1 million deal for Manchester City skipper Richard Dunne.

The News of the World says the Republic of Ireland international will be available for that knockdown figure under a FIFA regulation that allows him to buy out the remaining year of his contract.

Newcastle are also interested in signing Dunne but the lure of Champions League football and a £45,000-a-week contract offer from the Gunners could tempt him.