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Arsenal have missed out on the signing of Brazilian striker Matheus Cunha from Atletico Madrid this winter.
The 23-year-old has been on their radar for the past few weeks, but he won’t be joining them during the January transfer window.
Wolverhampton Wanderers had recently entered talks with Atletico for the marksman, and they have now reached an agreement.
Cunha will be joining them on an initial loan deal at the turn of the year with an option to buy for €40m to €50m in the summer.
The news is a huge blow for the Gunners, who had earmarked Cunha as a potential candidate to provide cover up front.
The Gunners are currently without Gabriel Jesus for months after his knee surgery and they desperately need a new signing.
Cunha would have been a quality option without a huge outlay. They will now need to look elsewhere to bolster their strikeforce.
Juventus’ Dusan Vlahovic could re-emerge as an option for them.