gunners in transfer battle with Atletico for £27m left-back Alex Grimaldo
A number of top clubs including Manchester City, Napoli and Inter Milan have been connected with the Spanish left-back.
And according to Mundo Deportivo, Arsenal and Atletico Madrid are leaders.
The Gunners are said to be weighing up an offer for Grimaldo, 23, which could include Nacho Monreal moving in the opposite direction.
While Atletico are in the market for a new left-back with Filipe Luis out of contract in the summer and Lucas Hernandez connected with an exit.
Arsenal manager Unai Emery wants to bring in at least FIVE players but will have just £40million to spend this mid year if the club pass up a Champions League spot.
The Spaniard wants two wingers, a few full-backs and no less than one focus back.
Even with a top-four finish, Emery’s financial plan would just be about £60m.
Benfica want about £26m for Grimaldo and it is that price-tag which halted him joining Napoli the previous summer.