Arsene Wenger faces battle with former club to sign £30m midfielder

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Arsenal and Manchester City could reportedly face serious competition from mega-rich AS Monaco in if either club hopes to secure the signature of highly-rated Malaga midfielder Isco in the summer transfer window.

According to talkSPORT, both Arsenal and Manchester City are interested in signing the £30 million-rated Spain international, although Monaco are intent on landing him ahead of the Premier League duo.

Monaco, previously managed by Arsenal boss Arsene Wenger, are backed by billionaire Dmitry Rybolovlev, and the Russian is intent on returning the club to former glories should they be promoted back to Ligue 1.

The principality side are currently top of Ligue 2, and could make a significant impact in the transfer market this summer should, as expected, they secure a spot back in the top-flight of French football.

Arsenal are unlikely to be able to compete with Monaco should both make formal approaches for Isco, even if Wenger is expected to invest significantly to reinforce his Gunners squad in time for next season.

Manchester City, however, have the financial power to match Monaco, although the Blues have looked to curb their previously excessive spending in recent transfer windows.

Isco, 21, has scored 11 goals in 36 appearances for Malaga this season, and he was awarded the title of La Liga's breakthrough player of the year earlier in 2012.

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