The Gunners were reportedly close to triggering Zubimendi’s £51M release clause, amid uncertainty over Thomas Partey and Jorginho’s futures.
However, according to The Athletic, Real Madrid are holding increasing discussions about a move for the 26-year-old.
Madrid, who are also targeting Trent Alexander-Arnold on a free transfer from Liverpool, are looking to strengthen their squad with both a centre-back and a midfielder as well.
Zubimendi had previously been linked with Liverpool but chose to stay at Real Sociedad.
With interest from both Arsenal and Madrid, competition for Zubimendi’s signature is set to intensify in the coming months.
