Arsenal have suffered another blow in this year's transfer market, as target Luis Gustavo looks to be joining Wolfsburg, according to the Daily Mail.
The German outfit have confirmed that they are close to prising the Brazilian midfielder away from current club Bayern Munich, despite hot interest from Arsene Wenger and Arsenal.
Wolfsburg called a press conference today, wherein they were expected to declare that they had moved into pole position in the race for Gustavo.
Klaus Allofs, Wolfsburg's general manager, said: "He's going to leave Bayern and our chances aren't bad. The deal is not done. To report that is just false."
Arsenal boss Wenger has thus far been frustrated in his attempts to add to his squad this summer. Primary target Gonzalo Higuain moved to Napoli, Luis Suarez seems to have committed his short-term future to Liverpool and other targets, including Everton's Marouane Fellaini, are the source of fierce competition from other clubs.
Wolfsburg coach Dieter Hecking admitted that a deal had not yet been sealed, but that he hoped Gustavo would be a Wolfsburg player before too long.
Hecking said: "We can't confirm the transfer yet. He has been with the Selecao, so we haven't had more talks.
"But we hope he will decide for Wolfsburg. Of course we know there are several other clubs interested."
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