Arsenal are preparing a move for Exequiel Palacios after his proposed move to Real Madrid collapsed.

According to reports in Argentina, River Plate star Palacios has been left stranded by Real, who have pulled out of mooted £20m move.

Radio Continentalsays Arsenal are now the favourites to land the 20-year-old midfielder.

The report claims Palacios' release clause is £18m, which would easily fit into Unai Emery's summer transfer budget.

Gunners fans can get a good look at Palacios this summer after he was named in Argentina's final 23-man squad for Copa America.