Arsenal are ready to pounce for Manchester City fullback Joao Cancelo.

The Portugal international has spent the second-half of the season on-loan with Bayern Munich, which have since clinched the Bundesliga.

However, Bayern are passing on Cancelo's £60m permanent option and sending him back to City.

At the Sky Blues, Cancelo has no future after falling out with manager Pep Guardiola, but Arsenal are keen to keep him in England.

Transfer expert Fabrizio Romano is reporting Arsenal are lining up a move for Cancelo - if City keep their asking price realistic.