Arsenal have been placed on high alert after Swansea City manager Michael Laudrup hinted that his captain Ashley Williams may leave the club.
The Gunners have long been linked with the Wales defender, who has been valued at £10 million.
Meanwhile, fellow transfer target Victor Valdes looks set to snub interest from the Gunners and join up with mega rich Monaco, who have just been promoted back to Ligue 1 in France.
Arsenal had looked to be in pole position to secure the services of the Spain international, though he looks to be joining up with Claudio Ranieri’s men, who are also reportedly close to signing Atletico Madrid striker Radamel Falcao.
The club also look set to miss out on striker Stevan Jovetic, after refusing to meet Fiorentina’s £25 million asking price.
The Montenegrin now looks set to join Serie A champions Juventus, who have also been linked with a move for fellow Gunners target Gonzalo Higuain.
Elsewhere, Andrey Arshavin could be set for move back to former club Zenit St. Petersburg, after coach Luciano Spalletti refused to rule out a move for Russian international.
The 31 year old, who has barely featured for Arsenal this season, is out of contract in the summer.