Arsenal technical director Edu has held talks with Arthur Melo’s agent - but still cannot reach agreement with Juventus.
The Italian giants have offered Arthur on an 18 month loan agreement but there are still big financial stumbling blocks to overcome.
Brazil international Arthur is keen to move to Arsenal, Gunners boss Mikel Arteta has spelt out his plans and Edu had a productive meeting with the midfielder’s agent Federico Pastorello in London.
Arsenal have offered a six month loan deal and are reluctant to commit to a longer agreement because they do not know whether they will have Champions League income next season.
There is still hope on all sides that a deal can be agreed with Arsenal also struggling to do a permanent deal now as they also chase other targets in this window.
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Juventus boss Max Allegri wants to bring in a replacement but this might not be as make-or-break as originally thought and if the clubs can reach a financial deal then it looks hopeful.
Arthur would also like a longer deal than six months such is his enthusiasm to join Arsenal and is pushing his agent to find an agreement.
Arsenal are also in the market for Fiorentina striker Dusan Vlahovic with the Italian club wanting at least £60m.
The Gunners have had conversations with the club and the player’s representatives with Fiorentina keen to do business now as his contract is running down while Vlahovic might want to wait until the summer when more clubs will be interested.
Arsenal have already shipped out Pablo Mari, Ainsley Maitland-Niles and Folarin Balogun on loan, Sead Kolasinac has been allowed to leave and the club are keen to shake up their squad with Pierre-Emerick Aubameyang having been offered a loan move by Saudi club Al Nassr.
They are keen to avoid the wage bill being overloaded and are clearing the decks in the hope of incomings in this window.
Speaking ahead of his side's Carabao Cup semi-final second leg against Liverpool, Arteta said: "The team are working extremely hard to get the players that we want and we have no news to give you.
"We have a plan to try to bring players in and try to get the players we want with the right qualities and improve the squad in the best possible way every single window."
And earlier this month, the Spaniard added: "With the amount of things and the way we want to evolve the squad, we have to maximise every window in many different ways.
"We are alert. Edu and his team are working very hard because we know exactly what we need to do. Whether we can accomplish that in January or in the summer is a different question related to other stuff but we are there.
"If it is the right player and we can afford it and we can do what we want to do, we will discuss it and make the best possible decision. We are open."
