ARSENAL have been dealt a blow after RB Leipzig confirmed they will hand a new contract to transfer target Lukas Klostermann.
The Gunners were linked with the right-back, 23, after allowing Stephan Lichtsteiner to leave the Emirates on a free transfer.
However, budget constraints saw Unai Emery target other areas of his squad instead.
But with Hector Bellerin yet to make a Premier League appearance this season, it was said that Arsenal were preparing to move for Klostermann in January.
But with Atletico Madrid also said to be interested, RB Leipzig are set to take action by rewarding Germany international with an improved deal.
Sporting director Markus Krosche told Bild: “We have said that we would like to extend Klostermann’s contract, and we are in talks.
“But we don’t feel any pressure. It’s important for me that you talk to the boys early enough for them to have time to think about it.”
Arsenal are keen on strengthening other areas of their squad too.
It’s said that Emery is keeping tabs on Trabzonspor goalie Ugurcan Cakir, who is also being watched by Liverpool, Spurs and Newcastle.
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And playmaker Kai Havertz will seek talks with Germany boss Joachim Low as he mulls his future at Bayer Leverkusen.
La Havre prodigy Tom Cadoche is set to be at the heart of a transfer tug-of-war between Arsenal and Man Utd.
But a permanent move for Dani Ceballos looks to be off the cards after he admitted he dreams of returning to Real Madrid and becoming a key player there once his Emirates loan ends.