Arsenal transfer latest: Academy graduate nears £26m move as Real Madrid swoop 'too late'

Arsenal are approaching the halfway point in the January transfer window without making a single signing but manager Mikel Arteta hasn't ruled out making signings

Following their FA Cup third round triumph over Portsmouth, Arsenal won't have long to recover as they prepare to take on Chelsea in the first leg of their Carabao Cup semi-final on Wednesday evening. Despite the packed fixture list leaving little time for transfer market considerations, Mikel Arteta's side could still be active before the window shuts.

Arteta has been candid about his squad's intentions as we reach the midpoint of the transfer window. The Gunners are open to bolstering their ranks this January, as they have successfully done in past windows, but it hinges on finding the right players and not being forced to overpay.

After all, Arteta and transfer chief Andrea Berta plugged plenty of gaps over the summer as Martin Zubimendi, Noni Madueke, Viktor Gyokeres and Ebere Eze all joined for fees exceeding £45million. There could be further expenditure next summer if Arsenal decide to activate their purchase option on loanee Piero Hincapie.

Past January windows have seen the London club snap up talents like Leandro Trossard and Jorginho, while winter sales have included Ayden Heaven's switch to Manchester United. Here are the latest transfer rumours surrounding Arsenal, including a potential second move in two years for a player once tipped for greatness in North London.

Real Madrid's Zubimendi mistake

Arsenal managed to secure the signing of Spanish midfielder Martin Zubimendi over the summer, beating off competition from other clubs who had shown interest in recent transfer windows. Liverpool's attempts to land the former Real Sociedad star were unsuccessful, and Real Madrid also threatened to steal in, only to find they were too late.

AS reports that Madrid's then-manager Xabi Alonso was eager to reunite with a player he knew well from their time together in the Basque Country. However, it's said that Los Blancos hesitated over making a move and by the time they decided to act, it was clear that the player had chosen Arsenal.

Despite missing out on Zubimendi, Madrid still splashed the cash in Alonso's first transfer window. Trent Alexander-Arnold and Dean Huijsen joined from Premier League clubs while Alvaro Carreras and Franco Mastantuono also moved to the Bernabeu.

However, Alonso reportedly expressed his frustration to club staff about the lack of a standout midfield signing. He believed Zubimendi could add qualities not provided by current quartet Jude Bellingham, Eduardo Camavinga, Aurelien Tchouameni and Fede Valverde, but didn't get his wish.

Alonso won't have a second chance to bolster his squad, as he was dismissed on Monday. Former Liverpool and Real Madrid defender Alvaro Arbeloa announced as his replacement, while there has been speculation a big name could yet arrive in the summer.

Ex-Gunner Malen in demand

Donyell Malen made a return to the Premier League last January, nearly eight years after his Arsenal career came to an early end. However, the Dutch forward's stint at current club Aston Villa could be brief.

Malen was highly regarded during his time at Arsenal, but Arsene Wenger allowed him to return to his home country with PSV Eindhoven. A fine scoring record in the Netherlands earned him a move to Borussia Dortmund, where he played his part in their journey to the 2024 Champions League final before joining Aston Villa in January of the following year.

Despite not being a regular starter under Unai Emery, the 26 year old has managed to score 10 goals across all competitions, averaging one every 150 minutes. This impressive record has sparked interest from Italian clubs.

Sky Italia reports that Serie A heavyweights Juventus have entered the race alongside Roma for the Dutch international. It was anticipated that Malen would be loaned out with an option for a £26million permanent move in the summer if successful, though it's unclear how Juventus' interest might affect the terms of any potential deal.