Atletico Madrid have confirmed their interest in Arsenal teenager Fran Merida and have rated him as one of the best youngsters in Europe.

The 19-year old Spaniard's Emirates Stadium future remains clouded as his contract expires at the end of the season and Atletico are keen to bring him to Vicente Calderon as are other clubs on the continent.

"Of course we are interested. He is one of the best young players in Europe," president Enrique Cerezo told Marca.

"But just as we are thinking of it, many other teams in Europe will be thinking the same.

"I'm sure that he has many offers because that is what someone of his quality deserves."

Merida's agent Joseba Diaz insists his client has not signed a five-year deal as reported and that the only club he has entered negotiations with is actually Arsenal.

"We haven't signed anything with Atletico because, simply, the only club with whom we are negotiating is Arsenal," said Diaz.

"The absolute priority of the lad is to renew with them. I repeat: There has been no agreement with anybody.

"Only if we don't renew with Arsenal will it be the moment to talk with other clubs. There's been interest from four clubs in Spain but I've not sat down to negotiate with any of them.

"Arsenal have the priority. Moreover, as always, they are acting like gentlemen."