Osasuna have rejected an offer from Arsenal for fullback Cesar Azpilicueta.

The News of the World says Gunners boss Arsene Wenger has been impressed with the 20-year-old and sources in Pamplona believe a four million euro offer was tabled by the Frenchman.

Osasuna rebuffed the approach but may be willing to broker a deal if the player is allowed to stay on loan in La Liga until the end of the season.

President Patxi Izco accepts it is only a matter of time before Azpilicueta is competing on a bigger stage but Manchester City have also been tracking his progress.

Indeed, Mark Hughes is understood to have watched the right-back in person.