Arsenal transfer news: Cazorla heavily linked with exit; Khedira talk rumbles on

All the latest transfer news and gossip from The Emirates this morning.

Santi Cazorla is looking increasingly likely to be departing Arsenal this summer for Atletico Madrid- despite his recent comments suggesting otherwise.

He recently told Marca of his admiration for Atletico - but in the same interview spoke romantically about Arsenal's upcoming Premier League campaign.

But reports are emerging today that Arsenal may have to sell a player to balance the books - and with Los Colchoneros keen, Cazorla might just be the man for the job.

Cazorla is believed to be interested in a move back to Spain - where he has admitted he would like to end his career. At 29-years-old he may never get a better chance then this and it appears a deal is looking likely.

More news on Sami Khedira, as the German World Cup winner continues to be heavily linked with a move to Arsenal.

Yesterday it was reported that Bayern Munich were keen on Khedira remaining at Real for another season. The plan was reportedly to snap him up on a free transfer when his contract expired in 2015.

However Bayern have since denied an interest while Real are still keen to sell - as they need to balance their FFP records after a heavy splurge this summer.

Khedira, who is valued at £25 million, may have to go for less than that if Arsenal are to take a punt on the player.

His wage demands are also believed to be proving a stumbling block to any Emirates deal.

Arsenal have been the subject of a sly jibe from Steve Gerrard. The Liverpool player has revealed how he told Luis Suarez to reject Arsenal's overtures last summer - as he believed the Uruguayan was too good for The Gunners.

Suarez, who was the subject of two Arsenal bids last summer, has since joined Barcelona this summer.

Register for ARSENAL team updates

Register for HITC Sport - Daily Dispatch