Napoli are closing in on a move for Maxime Gonalons after the club have opened talks with the player, reports talkSPORT.
This will come as a major blow to the Gunners, who had been heavily linked with a move for the 24-year-old midfielder.
The Arsenal boss had been extremely interested in bringing the Lyon star to the Emirates in the summer, however the Gunners chief eventually opted to sign free agent Mathieu Flamini.
However the Arsenal manager was ready to renew his interest in the player, but Gonalons' agent, Frederic Guerra has now revealed Italian giants Napoli are speaking with the midfielder.
Gonalons' agent told TMW: "I'm talking with Napoli and [their sporting director Riccardo] Bigon, let's see what happens later.
"Maxime is focused to do well with Lyon, this is a fact. It's normal and good to know that big European clubs take an interest in him."
Arsenal boss Arsene Wenger is trying to put a team together to end the club's eight year trophy drought and with the Gunners currently sitting top of the Premier League table they are on course to do just that.
However, they may now have to search elsewhere if they want to increase their midfield options as Gonalons now looks likely to end up in Serie A.