Arsenal boss Unai Emery faces working with a tiny budget for the summer market.

The Mirror says Emery will only have £40million to spend this summer.

The restricted budget means the new Arsenal boss faces another transfer window operating on tight resources after the cash-strapped club did not have enough money to make any permanent signings in January.

It leaves Emery facing a major battle to improve the squad despite this season's failings, which have them in danger of missing out on Champions League football for a third consecutive season.

Arsenal insist a big part of the issue is falling into line with the Premier League's strict spending rules on both transfers and wages.

They mean US owner Stan Kroenke cannot just pump huge amounts into the club, because they are already up to their limits and would risk breaking Financial Fair Play rules.