Arsenal are reportedly prepared to pay £72m for Marco Asensio - but he wants to stay at Real Madrid.

The young forward’s reputation is growing rapidly at the Bernabeu.

According to Spanish outlet Don Balon, Arsenal are willing to pay Asensio’s release clause worth £72m.

The Spaniard is yet to put pen to paper on a new contract, which is a situation Arsene Wenger wants to take advantage of.

Arsenal consider the set figure for Asensio cheap in the wider picture.

Don Balon say the forward does not carry the same desire for a move to north London though.

Inter Milan have tried to sign Arsenal defender Shkodran Mustafi on loan.

The Gunners have rejected the loan approach from the Serie A side but Sky Sports say they side will now return with a bid for a permanent transfer.

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Arsenal are said to want £35m for the Germany international in order to recoup the money they paid for him just last summer.

Mustafi made 26 top flight appearances for Arsenal last season and was first-choice alongside Laurent Koscielny.

Arsenal are ready to pay Marco Asensio's £72m release clause

Gabriel Paulista has left Arsenal to join Valencia for an undisclosed fee.

The Brazilian defender has penned a five-year contract at the La Liga side and leaves for a reported£11m.

He returns to Spain two-and-a-half years after joining the Gunners from Villarreal.

While in north London he picked up two FA Cup winners medals and two Community Shields.

But he made just 15 Premier League appearances last season and struggled for game time.