Arsenal have failed with an opening bid for SC Braga midfielder Pedro Neto.

A Bola says the Gunners are locked in a transfer tussle with Barcelona for his signature with Arsenal already lodging a bid.

Arsenal's bid of £13million has been rejected by Braga's club director Antonio Salvador.

The player has a £17.5m release clause in his contract and the club are standing firm in their valuation.

The report also claims that Barcelona have been tracking Neto for several years and are also preparing a bid to sign him this summer.