Despite reports earlier in the week insistent that Arsenal were confident of still landing Gonzalo Higuain, despite switching their attentions to Luis Suarez, it increasingly appears that may not be the case.
Napoli's interest was speculated earlier in the week, after the Italians sold Edinson Cavani to French champions PSG.
Club chairman Aurelio De Laurentiis was holding a Twitter Q&A with fans this morning where he discussed the way he intended to spend the windfall, confirming his interest in the Arsenal striker.
"We are negotiating for Leandro Damiao and Higuain. Raul Albiol is already having medical."
With a whopping €64 million accrued from the sale of Cavani, Napoli could even afford to buy both Higuain (€30 million) and (Damiao €25 million) and have some left over.
Tottenham had been long term admirers of Damiao but have let their interest slip in recent weeks despite Napoli stepping up their pursuit of him.
For Arsenal it is a more sizeable blow, with supporters at one stage led to believe by the media that the striker was in the bag, only for it to later be revealed that the club had yet to make a bid for the striker.
Now Arsenal have to decide whether to switch their attentions back to the striker, or carry on with the Luis Suarez pursuit and risk losing him.
Napoli and Madrid have already closed on deal, with the Raul Albio switch only dependent on a medical, which can only make it easier to do another.
The Italians unlike Arsenal have a guaranteed spot in next season's Champions League group stages, while the Gunners still have qualifying rounds to negotiate.
What should Arsenal do in response?
image: © Jan S0l0