It looks likely that Luis Gustavo will complete a move to Wolfsburg, meaning that both Arsenal and Chelsea will miss out of their respective target.
Bayern Munich have this summer secured the signature of midfielder Thiago Alcantara, and this has pushed the Brazilian down the pecking order at the Allianz Arena.
The two London clubs were reportedly interested in the Brazil international, but Bayern CEO Karl-Heinz Rummenigge has revealed that they are close to agreeing a deal with the fellow Bundesliga club.
The Munich supremo was quoted in German publication Kicker, as saying that negotiations between the clubs would soon begin.
"If Wolfsburg agrees personal terms with Gustavo, we will then negotiate," Rummennige plainly stated.
Having arrived in Bavaria two years ago, the midfielder has now made a century of appearances for Bayern Munich. He made over a third of those last season, as the club had unprecedented success on all fronts, and which culminated with a Champions League victory at Wembley.
The Bayern CEO went on to add: "If Luiz leaves the club, we will not buy another player."
This summer both Mario Gotze and Alcantara have been signed, as Pep Guardiola takes on the challenge of maintaining the success experienced in the last campaign.
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