Arsenal are concerned as they face competition for Manchester City striker Gabriel Jesus.
The Brazilian has been offered to Real Madrid and Atletico Madrid, says Cadena SER.
Arsenal have been heavily linked with a move but Mikel Arteta may be left sweating over the chase for the striker after both Madrid sides are said to have emerged as potential competition for his signature.
The 25-year-old has been offered to both Atletico and Real with the player demanding €5million (£4.3m) after tax per year.
The news comes as a blow to the Gunners, who were said to have placed Gabriel Jesus firmly at the top of their summer wish list having waved goodbye to both strikers Pierre-Emerick Aubameyang and Alexandre Lacazette this year.
Arteta is believed to have held an excellent working relationship with the 25-year-old during his time as assistant boss at the Etihad and both parties were reportedly keen on a deal.
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