Arsenal are set to battle their London rivals Chelsea for the signature of highly-rated Spanish starlet Saul Niguez, according to the Mirror

The Gunners have been linked with a move for the 19-year-old Atletico Madrid player - but are set to face a bidding war with Jose Mourinho's side. 

Niguez - an Spanish under-21 international - has come to the attentions of Europe this season after impressing in La Liga for loan club Rayo Vallacano. 

The former Real Madrid youth team player moved across the city to Atletico at the age of 14, and made two first team appearances at the Estadio Vicente Calderón before a loan move away.

It is reported that Arsene Wenger has already entered into talks about bringing the starlet to the Emirates - but Chelsea have now entered the race after sending scouts to watch Niquez. 

Arsenal have an impressive record of tempting Spanish talent to move overseas - with the likes of Cesc Fabregas and Santi Cazorla moving from La Liga to London in the past. 

But Mourinho - who has experience in Spain managing Real Madrid - is not likely to give up easily. 

The Chelsea manager is set to lose Belgium starlet Kevin De Bruyne to Wolfsburg this week, with Niguez his potential replacement. 

Atletico are said to be willing to allow the move at the right price due to their financial woes, meaning a move could happen before the end of the month. 

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