Bayern Munich are reportedly interested in signing Arsenal-linked midfielder Granit Xhaka from Borussia Monchengladbach this summer.
The Gunners were said to be closing in on a £33m deal for the Swiss international after holding talks with the player's representatives last month.
According to German publication Express, however, Arsenal face a real challenge to land the Gladbach skipper as Bundesliga giants Bayern are also weighing up a move.
Xhaka has previously admitted that playing in the Premier League is a "childhood dream" of his, but the same report suggests that incoming Bayern boss Carlo Ancelotti has given the green light to activate the 23-year-old's release clause.
Arsenal have previously been linked with a move for right-back Rafinha, who is thought to be available to buy during the off-season.
