Arsenal report: Gunners dealt blow as club told they must spend more than £20m on Brazilian starlet

Arsenal have been dealt a blow in their pursuit of Brazilian midfielder Danilo, according to reports.

The 21-year-old has emerged as a late target for the Gunners, as they seek to bolster their squad before the summer transfer window closes for business at 11pm on Thursday.

With Thomas Partey and Mohamed Elneny having suffered injuries in quick succession, Arsenal are set to go back into the market for a midfielder.

Arsenal's technical director Edu has had Danilo, who plies his trade for Palmeiras in the top flight of the Brazilian game, on his radar for some time.

But according to Goal, the Gunners' offer of £20m will not be sufficient to prise the Salvador-born starlet away from the Allianz Parque at this time.

Danilo's contract contains a release clause of £86.3m, but Palmeiras know they will not be able to attract a bid of that amount for a player who remains uncapped at senior level and is valued at £22.5m by Transfermarkt.

However, they believe he is worth more than £20m and could use rumoured interest from AC Milan to drive up the price, as the reigning Italian champions consider entering the race before Serie A's transfer deadline of 4pm.

Mikel Arteta's side remain top of the Premier League table after goals from Brazilian pair Gabriel Martinelli and Gabriel Jesus earned them a 2-1 victory over Aston Villa at the Emirates Stadium.

Arsenal have won all five of their matches so far this season, making this their best start to a top-flight campaign since 2004/05, when Arsene Wenger's side went on to finish as runners-up behind a Chelsea team managed by Jose Mourinho.

The Gunners will return to action against Manchester United on Sunday afternoon, as Arteta's men seek to avenge a 3-2 defeat by the Red Devils at Old Trafford last season.

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 Arsenal are still looking for the “mystery winger” to complete their squad, while a midfielder has also been touted. 

After Nicolas Pepe left the Gunners for more minutes on loan at Nice, manager Mikel Arteta declared a desire to “add firepower”, though he cannot guarantee a new player will come in. The Gunners have interest in Pedro Neto, as well as a Ukrainian wonderkid. 

Mohamed Elneny’s injury means that midfield might need strengthening, too. FFT reported months ago that personal terms with Youri Tielemans were agreed, with the north Londoners just needing to agree a fee with Leicester: now, one obstacle remains. In other news, Bukayo Saka has hinted that he’s close to extending his contract.