Arsenal could learn this week if they've won the race for Cruzeiro midfielder Lucas Silva. Amid competition from Real Madrid, it's understood the Gunners had a £12 million offer for the youngster accepted by Cruzeiro last week.

Ahead of Real Madrid's Friday night game against Almeria before they fly to Morocco for the World Club Championship coach Carlo Ancelotti was asked about the possibility of signing Silva in January and said: "We are waiting to see how the recovery of Modric and James [Rodriguez] progresses."

Cruzeiro officials are expected to hold talks with Madrid officials in the next couple of days in Belo Horizonte and if the Spanish club fail to meet the asking price Arsenal will be favourites for his signature.

Silva is part-owned by a sports investment fund who would be owed around £4m from any £12m sale, reports the Mail on Sunday.