Reports suggest that Real Madrid will demand £38million for Alvaro Morata.

It is widely believed that the Spanish giants will re-sign the striker from Juventus for £24m, per the clause in his contract with the Italian champions, before selling him on.

The Gunners are showing significant interest in Morata, 23, but will have to part with £38m for his services according to The Sun.

Arsene Wenger has been watching the eight-time Spain international for some time and is believed to be ready to pull the trigger on a summer bid, but may have to compete with Chelsea.

Incoming Blues boss Antonio Conte is reported to be keen on Morata and could also make an offer on the player who cost Juventus £16m two years and has scored 27 goals in 93 appearances in all competitions for the Bianconeri.