Stoke City manager Tony Pulis is willing to include Potters striker Ricardo Fuller in a deal to lure £15million rated defender Scott Dann to the Britannia Stadium at the expense of Arsenal.
The Daily Mail reports that Pulis has already tabled a £12million offer for the 24-year-old stopper, but the recently relegated Blues are holding out for more.
Gunners boss Arsene Wenger is keen to strengthen his defensive department at the Emirates Stadium this summer.
Having already lost out on a deal for Phil Jones, who opted to join rivals Manchester United, Arsenal are eager not to let another transfer target slip from their grasp.
Arsenal also retain interest in Blackburn Rovers captain Christopher Samba, who has expressed a desire to join the Gunners.
But Wenger and Co. may face an uphill struggle to prise him away from Ewood Park after manager Steve Kean reiterated he will not be forced to sell his strongest asset.
With Dann said to be the second-choice central defensive acquisition, Arsenal will have to respond quickly to Stoke's proposed plans of a player-plus-cash offer.
With today's appointment of Chris Hughton as the new manager at St Andrews, one of his first jobs will be to resolve the future's of a number of Birmingham's key players ahead of the start of the new season.
One certainty is that former Blues boss Alex McLeish will not be bidding to bring Dann across town to Aston Villa, after revealing he does not have the budget to compete with Stoke or Arsenal's prospective offers.