ARSENAL TRANSFER NEWS

Everton and Arsenal are both prepared to pay €48m for the talented 22-year-old, according to a report from Lozano's native Mexico.

Sanchez and Ozil are both in the final year of their contracts and are free to discuss a Bosman move with foreign clubs from January.

Arsenal have identified PSV Eindhoven winger Hirving Lozano as a potential replacement for Alexis Sanchez and are ready to make a £42.5m offer.

Arsene Wenger has ruled out the possibility of allowing Giroud to leave on loan in January, despite the striker starting only once in the league.

Abdou Diallo has been identified as a long-term replacement for Per Mertesacker, who is retiring next summer to take a role in Arsenal's academy.

Manchester City are the latest club to join the chase for Crystal Palace's Wilfried Zaha. Arsenal and Chelsea have been previously linked with the former Manchester United man.

Alexis Sanchez appears closer than ever to joining Manchester City after turning down a move to Hebi China Fortune in the Chinese Super League.

Allardyce has worked with both the Belgian and Frenchman at Crystal Palace and Blackburn Rovers respectively.

Ozil and Sanchez are in the final knockings of their contracts in north London, and neither seem likely to stay beyond the summer.

Arsene Wenger is confident Mesut Ozil will sign a new deal after the Arsenal ace scored a brilliant goal to give the Gunners a 1-0 victory over Newcastle.

Jack Wilshere has made only one start in the Premier League this season. It came during Arsenal's goalless draw against West Ham United on 13 December.

Ozil, 29, is in the final six months of his Gunners contract, with talks over a new £235,000-a-week deal having ended in failure.

Giroud reportedly considering joining another club on loan until the end of the season as he fears being left out of France's World Cup squad.

Arsenal right-back Hector Bellerin has emerged as a priority target for Serie A champions Juventus as the Italian club look for a long-term replacement for Stephan Lichtsteiner.

Giroud, 31, is yet to start a league game for the Gunners this season, with club-record summer signing Alexandre Lacazette ahead of him in the pecking order.

Sterling, 23, says he would like to move to a foreign club if he ends up leaving City at some point in the future.

Arsenal manager Arsene Wenger has hailed Mathieu Debuchy rebirth and says the France full-back has a future at The Emirates Stadium

Walcott has not started a Premier League match this season and is on Sam Allardyce's agenda according to recent reports.

Theo Walcott still has a future at Arsenal and will not be offloaded by the club during the January transfer window, according to manager Arsene Wenger.

Steven N'Zonzi claims his future lies away from Sevilla following a bust-up with Eduardo Berizzo, although insists that he is in London to see his son rather than negotiate a move.

Mahrez's representatives were in touch with Dick Law while he himself had spoken to Arsene Wenger and was convinced of the suitability.