VfL Wolfsburg are still a good chance of capturing the signature of Bayern Munich's Luiz Gustavo.

The Brazilian has been made available by the Bundesliga and European champions with Wolfsburg looking to swoop despite significant interest from Arsenal.

Wolfsburg general manager Klaus Allofs was remaining cautious about his club's reported stranglehold on the deal.

"He's going to leave Bayern and our chances aren't bad. The deal is not done. To report that is just false," he said.

It is believed that Arsenal could make another bid for the 26-year old who is valued at around £15million.

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