All the latest transfer news and gossip from The Emirates.
The club have been linked with the likes of William Carvalho and Sami Khedira this summer but both would be very expensive - and Arsene Wenger is not believed to be keen on spending over £20 million on a holding midfielder.
So attention has now turned to Newcastle United midfielder Cheick Tiote. The Ivorian is believed to be available at St James Park and would cost a far deal less than the other reported targets.
He would follow Mathieu Debuchy in making the switch from St James Park to The Emirates.
Even if Arsenal were interested in Sami Khedira, which Wenger insists they are not, he is not for sale - according to Real Madrid boss Carlo Ancelotti.
The Italian says of his German World Cup winner:
"He's not leaving. He's a Real Madrid player. He has a contract until June 30, 2015 and that's all there is to say."
His expiring deal has made him a reported target for many clubs including Arsenal, Bayern Munich and Chelsea.
Vargas, who is contracted to Napoli, has been out on loan at Valencia and Gremio in recent times - after failing to establish himself at the Stadio San Paolo.
Vargas has 15 goals in 32 games for Chile - although Napoli are keen to give him a chance this season, making a move unlikely.
Finally and Arsenal are being linked with another Belgian to replace Thomas Vermaelen - who joined Barcelona at the weekend.
However he has failed to establish himself under Diego Simeone and is reportedly keen on a move.