Atletico Madrid are willing to splash out £10 million for Arsenal midfielder Fran Merida.

The Sun says he could be a free agent in the summer and Atletico president Enrique Cerezo confirmed last night: "He has entered into our plans for next season.

"He is a player that interests us. The decision rests with the kid because he is free in June."

Merida wants to keep his options open and is currently talking to the Gunners about a new deal.

The Spaniard, picked up from Barcelona in 2006, said: "At the moment I am talking to the club so I don't know what is going to happen.

"Hopefully everything is going to be all right but we are going to sit down and talk about it.

"I am really happy in London."

Merida shares the same agent as Cesc Fabregas, Joseba Diaz, and a source close to the player indicated yesterday: "Fran views the possible return to Spain as an attractive one but he has still not decided about his future."