Arsenal and Liverpool set to battle over Real Madrid's Jese

Arsenal and Liverpool are set to compete for the signing of Real Madrid forward Jese, who looks set to leave the Spanish giants in the summer.

Real coach Zinedine Zidane has urged the 23-year-old Spaniard to join another club if he wants to play regular first-team football, according to Marca.

Alvaro Morata's return from Juventus earlier this summer has increased competition in the striking positions at the Santiago Bernabeu, with James Rodriguez, Isco and Marco Asensio all ahead of Jese in the pecking order.

The Sun says Arsenal and Liverpool are among a host of Premier League clubs monitoring the young forward.

The Gunners are in the market for a striker and have been linked with a move for Inter Milan captain Mauro Icardi.

The North London club have had a £29m (€35m) offer rejected for Lyon striker Alexandre Lacazette.

Espanyol interest

Jese made 28 league appearances for Real Madrid last season, scoring five goals. He has 12 months left on his contract at the Bernabeu.

La Liga outfit Espanyol have also been linked with a move for the 23-year-old, who has represented Spain through the U-16 to the U-21 levels.

"He is an option," Espanyol chief executive Roman Robert told AS last month. "We are analysing the names of a lot of players who would be great to have.

"I don't know whether he would be an Espanyol player or not, but I do know that this is not close to being done."

On 26 July, Lyon denied that they had received an improved offer of £40m for Lacazette.

"Olympique Lyonnais categorically denies having received a €48m (£40m) offer from Arsenal for Alexandre Lacazette," the Ligue 1 club said in a statement.

"The reality is that the club Arsenal made an offer worth 35m euros (£29m), which Lyon did not follow up on for one reason: OL will keep Alexandre Lacazette who is irreplaceable and who is one of the main leaders in Bruno Genesio's squad."