Arsenal could reportedly lose out in the race to sign Barcelona striker David Villa in the January transfer window, with Atletico Madrid planning a bid for the the Spain international.
The Gunners have been frequently linked with a transfer window swoop for Villa but, according Grada360.com, Arsenal face stiff competition for the Barcelona forward from Atletico Madrid.
Villa has reportedly been identified by Atletico as a potential replacement for Radamel Falcao, who could leave either in January or at the end of the season, and the Madrid side are considering a £12 million offer.
Arsenal have also suffered a blow in their apparent pursuit of Villa after reports on Monday suggested the 31-year-old would stay in Spain with his wife expecting a baby in February.
Last week it was claimed Arsenal had made an approach for Villa as Arsene Wenger strives to bring goalscoring reinforcements to the Emirates Stadium before the transfer deadline.
Despite the acquisitions of Olivier Giroud and Lukas Podolski last summer, Arsenal have yet to sufficiently compensate for the departure of captain Robin van Persie.
Theo Walcott has impressed since being switched into a central position, but Arsenal still lack a proven goalscorer of Van Persie's calibre.
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