Arsenal transfer target Jefferson Farfan is being tracked by Inter Milan, according to reports.
Arsene Wenger is said to be a long time admirer of the Peruvian attacker, but it appears the Serie A team have stolen a march on the Gunners.
There had been talk of a swap deal with Farfan going to the Emirates Stadium and Andrei Arshavin heading to Schalke.
The Bundesliga side are having something of a clear-out as a number of their players are coming to the end of their contracts.
Farfan's contract runs out in the summer and Schalke are unlikely to pass up the chance to cash in.
Inter are looking to add some new faces to a squad that has experienced a difficult start to the season, sitting in 15th position and just four points above the relegation zone.
Arsenal are in need of some quality back-up for captain Robin van Persie and Farfan could also fill in for Gervinho while the Ivorian is on African Cup of Nations duty.
The 27-year-old joined Schalke in 2008 from Dutch side PSV Eindhoven and has made over 100 appearances.