Arsenal are leading the race for Velez Sarsfield midfielder Ricardo Alvarez says Palermo president Maurizio Zamparini.
The Italian club were heavily pursuing the 23-year old Argentine ace but Zamparini has conceded defeat to the Gunners.
"We did have a concrete bid for Alvarez and had him in our grasp back in January," he told Radio Kiss Kiss.
"Unfortunately, we didn't complete the move in time, so we lost him to Arsenal.
"At this moment he has already signed for the Gunners."
