Arsenal are being linked with an £11 million move for Argentine midfielder Ricardo Alvarez.
The Velez Sarsfield star was reportedly in talks with the Gunners over a potential move last month, but after negotiations stalled, Inter Milan were thought to have joined the race for the player.
However, The Sun claims Arsene Wenger is ready to step-up his interest in the 23-year-old once again, with the Arsenal boss keen to make the addition before the north Londoners return to pre-season training in eight days.
"He is definitely of interest," a highly placed source told the British paper in reference to the interest of Arsenal.
"There has been no deal with his club Velez Sarsfield but it is true the club have been looking at Alvarez."
Linked with a move to the Emirates as a possible replacement for club captain Cesc Fabregas, the Emirates outfit have denied that a deal has been struck despite Palermo president Maurizio Zamparini claiming Arsenal had won the race.
"We had the matter in hand in January but Alvarez has now given us the slip and signed for Arsenal."
Velez president Fernando Raffaini initially quoted Wenger £11 million last month, a figure which caused the original negotiations to stall between parties.
Arsenal appear to have returned to the former Boca Juniors youth team player though, and a deal once again seems possible.