Arsenal are all set to agree an £8m deal with Real Madrid for Alvaro Morata but must include a buy-back clause in the deal, reports the Daily Mirror.
The Gunners attempted to convince Real Madrid to sell the young Spanish striker in the January transfer window but Carlo Ancelotti was insistent that no stars would leave midway through the season.
However, the Italian manager is willing to let the Real Madrid youth product Morata leave in the summer so long as they have the option to buy him back for a fixed price in two years time. Both Manchester United and Tottenham have also been credited with an interest this year.
If the clause is included, Real Madrid will be willing to part with Morata for £8m, which is substantially less than the reported £20m asking price.
After a fresh round of talks with Real Madrid, Arsenal are the clear front runners to land the Spanish under-21 international ahead of Premier League rivals Manchester United, who have also been linked with a move in recent weeks.
Arsene Wenger is desperate to add to their attack this summer having relied heavily on Olivier Giroud this season. At times, Giroud has struggled to perform, leaving Wenger with little choice but to use the unproven Yaya Sanogo and the previously exiled Nicklas Bendtner.
The Arsenal boss wants a big-name striker to join Morata at the Emirates next season and has highlighted Bayern Munich's Mario Mandzukic as a potential target.
Arsenal's stance on adding a buy-back clause to the Morata deal could be off putting as Wenger would lament losing the Spaniard should he excel in the Premier League. Wenger may wish to offer more than the £8m asking price and request that no buy-back clause is added.
However, Real Madrid are keen to keep their best youth products at the Bernabeu and have shown that they are willing to sell stars and buy them back after purchasing Daniel Carvajal after just one season at Bayer Leverkusen.
Meanwhile Manchester United manager David Moyes has also highlighted Morata as a potential replacement as he looks to replace Javier Hernandez, who looks set for an Old Trafford exit this summer.
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