Arsenal face fresh competition in the race to sign Italian international midfielder Riccardo Montolivo, according to reports.
The Fiorentina playmaker has been heavily linked with a move away from the Stadio Artemio Franchi, with Montolivo's contract set to expire at the end of the season and a new contract far from close.
Arsenal boss Arsene Wenger is a known admirer of the 26-year-old, but reports in Italy claim Milan are now in 'pole position' to sign the player.
Sources in the country go on to claim the two Serie 'A' parties are close to an agreement which would see the player move to the San Siro for a fee in January.
The news will come as a major blow to Wenger, who had highlighted the former Atalanta starlet as a possible replacement for Samir Nasri at the Emirates this summer.
After failing to secure the player's signature, Arsenal were again expected to make a move for the player in January.
The Viola may also look to take advantage of the interest and get the best price for the player, giving Arsenal a chance when the transfer window re-opens in New Year.