Real Madrid have reportedly emerged as frontrunners ahead of Arsenal for the signature of Atletico Madrid defender Jose Gimenez.
New Arsenal boss Unai Emery is keen to bolster his defensive options this summer following the retirement of Per Mertesacker and a long-term injury for Laurent Koscielny.
Club scouts have been monitoring the progress of Gimenez for a number of months, and the Gunners were expected to lodge a formal bid for the 23-year-old this summer.
However, Spanish outlet Marca claims that Real Madrid have now moved ahead of Arsenal in the race to sign the Uruguayan international.
The European champions are reportedly willing to trigger Gimenez's £53m release clause to prise him away from their city rivals, capitalising on hesitation from the Premier League club.
Arsenal are close to bringing in another centre-back this summer, with Sokratis Papastathopoulos set to join for £16m.
