Chelsea and West Brom also feature, along with a Football League loan review.
Our daily midnight run through of the biggest five transfer stories of the day.
1) Front page of French newspaper Le10Sport today claimed Arsenal have expressed an interest in superstar striker Edinson Cavani, along with Real Madrid and Barcelona. Cavani scored 42 times for club and country in 2012/13. The Gunners are said, by the Express, to have baulked at his wage demands, which they argue is a boost to Manchester City and Chelsea, also interested. However PSG's chairman said in reference to Javier Pastore, and the Uruguayan, that nobody is for sale this January. Our perspective on it can be found here.
2) Liverpool linked with three signings: Beginning with Barcelona full-back Martin Montoya, Liverpool MD Ian Ayre is said to have flown to Spain to discuss the deal. Montoya is out of contract next summer, so Barcelona will be keen to agree a price and sell sooner. The Mirror link the Reds with Sevilla midfielder Ivan Ratikic, who is also interesting Chelsea and Manchester United. The Telegraph write that Brendan Rodgers wants Chelsea's Ryan Bertrand to solve the left-back dilemma at the club, a player he knows from his days coaching at the club.
3) Chelsea have their own left-back issues, of which Bertrand does not appear to be a part of, but nor does Ashley Cole, benched ever since the loss at Newcastle. The Mail report that Jose Mourinho wants to turn to old face Fabio Coentrao on loan, a target for Manchester United and Tottenham during the summer. The agent of Nemanja Matic, and Jose Mourinho, has also confirmed the Blues are 'very interested' in the Benfica midfielder.
4) Arsenal and Chelsea are about to be disappointed, because West Brom are on the verge of agreeing a new deal with young striker Saido Berahino, report The Mirror. A formal announcement is expected to be made on Friday, with Berahino upping his salary from £850 a week to £15,000.
5) And finally, it has been a busy day in the Football League, with the loan deadline passing at 5pm. Arsenal, Manchester United and Liverpool are among teams to loan stars out, with Michael Keane to Derby, Will Keane to Wigan, Nico Yennaris to Bournemouth, and Adam Morgan to Yeovil confirmed. Shay Given from Aston Villa to Middlesbrough for one month is arguably the most high-profile switch. A full Championship round-up can be read here, and a League One review here.