Arsenal are locked in Gremio talks for midfielder Bitello.

Gunners chief Edu has been speaking with Gremio officials for much of this month over the 23 year-old.

TMW says a breakthrough has been found and an agreement could be struck this week.

Bitello may be signed by Arsenal and sent back to Gremio on-loan for the season.

There are doubts the Brazilian currently qualifies for a UK work permit.