Arsenal are expected to lose out on a long-term transfer target with Nottingham Forest set to confirm a deal for the Palmeiras midfielder Danilo.
The Gunners have been linked with a move for the talented 21-year-old and were poised to sign Danilo in the January transfer window. However, Forest have hijacked Arsenal's proposed switch for the Brazilian and he is now ready to join Steve Cooper's men ahead of the second-half of the campaign.
According to the Daily Mail, Forest have beaten a number of European clubs for Danilo's signature after Monaco made a late bid to sign the player. The deal is significant and would land at a price of around £18million plus add-ons, becoming Forest's second most expensive player behind Morgan Gibbs-White.
Danilo is set to follow fellow Brazilian Gustavo Scarpa through The City Ground doors to become their second January arrival as Cooper looks to bolster his squad. Forest booked their place in the semi-final of the Carabao Cup with a penalty shootout win over Wolves on Wednesday following a 1-1 draw after extra-time.
The Reds have since been drawn against Manchester United in the last four, potentially another reason behind why Danilo would want to join Forest with that on the horizon. However, Cooper's side are still firmly locked in a relegation battle and sit just two points above the bottom three.
Forest face Leicester in an East Midlands derby on Saturday and it is a game that could have huge ramifications on the relegation dog fight, with Brendan Rodgers' Foxes in 13th and the Reds in 15th. Although it is extremely unlikely that Danilo will be signed in time to face Leicester, he could have a massive impact on Forest's chances to stay in the Premier League this season.
With Bournemouth, Leeds and Fulham to come in the league after the clash with Leicester, this feels like a critical period for Forest and Danilo's arrival may help them pick up more points. Danilo came through the ranks at Palmeiras, and following his first-team debut in 2020, he has made 138 appearances, scoring 12 goals.
Meanwhile, for Arsenal, it is a blow with Arteta keen on strengthening his pack in the transfer window. The Gunners are flying high in the Premier League, having dropped just seven points all season and losing once, which came against Manchester United in September.
Arsenal have had a settled midfield three all season with Thomas Partey, Granit Xhaka and Martin Odegaard forming a pretty strong bond in the middle of the park. But with Partey and Xhaka both 29 and entering into the latter stages of their careers, the Gunners are looking to bolster their ranks in the midfield area.
