Arsenal are close to signing Real Madrid midfielder Dani Ceballos on loan but have abandoned their pursuit of Celtic defender Kieran Tierney.
The Gunners had made Scotland international £25m-rated Tierney one of their top targets this summer and the 22-year-old was reportedly keen to move to north London.
However, according to the Daily Record, the Premier League side have decided to give up the chase after seeing a third bid rejected by the Scottish champions.
Celtic wanted most of the £25m up front, but Arsenal’s latest offer came in the form of staggered payments and add-ons, which the Bhoys turned down.
The Gunners, who only have around £40m to spend this summer, have now moved on to other targets.
They are, however, close to a deal for Ceballos.
Rivals Tottenham were also interested in the 22-year-old Spaniard but the Gunners have won the race and are set to bring him to the Emirates Stadium, having agreed a season-long loan deal for the Real Madrid youngster.
Unai Emery spoke highly of Ceballos in a recent interview, hinting that he could soon be on his way to Arsenal.
Speaking on Monday, the Arsenal manager said: “Ceballos is a very good player. I know him from Real Betis at the beginning and Real Madrid.
“He played very well in the Under-21s European Championship, his national team won the competition.”
The Gunners are set for a big week in the transfer market, with the club also expected to table another bid for Wilfried Zaha.
Despite not being prepared to pay anywhere near Crystal Palace’s £80m valuation, Arsenal have not given up on the Ivorian winger.
On Monday, it was claimed by The Independent that their latest offer, of £55m plus 19-year-old winger Reiss Nelson on loan, had been rebuffed.
But Sky Sports now say Arsenal are refusing to give up their pursuit and will make a new offer this week.
Meanwhile, the club are also finally set to complete the signing of Saint Etienne defender William Saliba this week.
The 18-year-old will sign a contract with the Gunners but the terms of the deal mean he will return to the French club on loan for the forthcoming season.
