Manchester City are set to make Gary Cahill their first summer signing and leave Arsenal frustrated in their bid to improve their defensive options, according to the Sun.
The Bolton Wanderers centre-back is expected to leave the club this summer as he look to further his career and retain his place in Fabio Capello's England squad.
And Arsenal, who have tracked the defender for some months, are set to miss out on Cahill to City.
Arsenal saw defensive problems undermine their challenge for their first trophy in six years, and are looking to Cahill to plug the gap in their leaky back-four.
City meanwhile are attempted to build a squad capable of usurping Manchester United at the Premier League's top dogs.
Both Arsenal and City are interested in Belgian defender Jan Vertonghen and may have to compromise.