Bayern Munich have made a stunning £58.6million bid to sign Liverpool's Luis Diaz - a move that could dent Arsenal's hopes of signing a left-sided forward this summer.
Vincent Kompany's Bayern are desperate to strengthen their left flank after losing Leroy Sane to Galatasaray, Mathys Tel to Tottenham and Frans Kratzig to Red Bull Salzburg.
Diaz, 28, has emerged as a top target for Bayern after impressing for Liverpool. According to The Athletic, Bayern's first proposal - said to be £58.6m - was rejected by the Reds on Tuesday.
Liverpool value Diaz at above £86.8m and do not want to sell him. However, Diaz, who has two years left on his contract, has made it clear that he wants to leave Anfield this summer.
It's unclear, at this stage, whether Bayern are prepared to come in with a second offer for Diaz or look elsewhere. Should the German side keep trying to sign Diaz, it would represent a major blow to Arsenal.
This is because the Gunners need to sell either Leandro Trossard or Gabriel Martinelli to manoeuvre a move for a left-sided forward, according to journalist Ben Jacobs. Both Trossard and Martinelli, alongside AC Milan's Rafael Leao and Brighton's Kaoru Mitoma, are part of Bayern's shortlist for a new left winger.
But if Diaz goes to Bayern, it would reduce the chance of selling either Trossard or Martinelli. That means that Arsenal may not be able to strengthen their left-hand side, with Rodrygo of Real Madrid, Newcastle United's Anthony Gordon and Leao right at the top of Arsenal's shopping list in that position.
Rodrygo has been at the centre of transfer speculation for most of the summer, as rumours continue to circulate surrounding his Real Madrid future. Meanwhile, Arsenal have long been admirers of Gordon and Leao.
Elsewhere, Mikel Arteta's side have made a fast start to July as they ramp up their transfer business. The Gunners have signed three players this month, as Kepa Arrizabalaga arrived in a £5m swoop from Chelsea, Martin Zubimendi made the £51m move from Real Sociedad and Christian Norgaard signed for £10m from Brentford.
More are expected to follow. Noni Madueke is closing in on a £52million switch from Chelsea, while Viktor Gyokeres and Cristhian Mosquera are anticipated to sign from Sporting CP and Valencia. The Gunners are working on a £63.8m deal for Gyokeres, while Mosquera is on course to arrive for around £17m.
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