Arsenal has been long-term admirers of Real Madrid midfielder, Isco, but they could miss out on signing the Spaniard in this transfer window.
He has fallen down the pecking order at the Spanish club and looks set to finally leave them this summer.
Arsenal is looking for new midfielders and has remained interested in signing him.
However, it seems AC Milan will beat them to his signature with Todofichajes claiming that the Italians are closing in on signing him.
The report says Isco is trying to impress the new Madrid boss, Carlo Ancelotti but the Italian has decided to let him leave in this transfer window.
Now that the midfielder has accepted a move to Milan all that is left to be resolved is an agreement between the clubs themselves.
That should not take too long to sort with the report claiming that the former Malaga man is set to make the move to Italy for €18M.
He will be given a long-term contract until 2025 or 2026.
Arsenal can still hijack the transfer for him, but the Gunners remain positive that they can secure the return of his teammate, Martin Odegaard instead.
It would be interesting to see if they will step aside and allow Isco to join Milan even though there is no guarantee that Odegaard will return.