Arsenal have launched a bid for Palmeiras midfielder Danilo.

R7 in Brazil reports Arsenal are said to have lodged a £16.5million (€20m) bid for Palmeiras' impressive midfielder Danilo.

The 20-year-old played a key role in helping Palestra win back-to-back Copa Libertadores titles last season.

And despite having a good relationship with manager Abel Ferreira and the board, he is now being linked with a move to Europe.

The Gunners have made an offer of an initial £16.5m, with a further £4m in performance-based add-ons.

Danilo has 'received a proposal' from Arsenal for a move in January, as well as the bid.