Arsenal are preparing a move for River Plate midfielder Exequiel Palacios after his transfer to Real Madrid collapsed .
He is expected to leave River after four years in the first team, having made his debut as a 16-year-old.
Real Madrid had been the frontrunner and nearly signed Palacios for £20m but he sustained an injury and the deal collapsed.
Now Argentinian radio station Radio Continental report that Arsenal have emerged as the new favourites to land the midfielder and are considering an offer of their own.
Palacios has a release clause of around $23m (£18m) and would be well within Arsenal’s transfer budget even if they do not qualify for the Champions League.