Arsenal and Real Madrid have been left frustrated in their pursuit of Athletic Bilbao keeper Kepa Arrizabalaga.

The 23-year-old, whose current deal expires next summer, has been strongly linked with both sides in the past.

However, according to Spanish source Marca, the talented keeper is set to agree to a new deal worth around £2.7million per year with Bilbao.

The new deal is expected to have a huge release clause of £66.5m.