Arsenal are set to miss out to Wolves in the race for Benfica's young midfielder Joao Carvalho.
The 20-year-old's agent, Jorge Mendes, appears set to continue his influence on the Championship leaders.
The Gunners have tracked the Portugal Under-21 star but appear set to miss out to Nuno's side, report Portuguese publication Record, as it will provide greater playing time and accelerate his development.
It will be a blow to Arsene Wenger, but emphasise the potential Wolves now have with some of Europe's most talented players at their disposal.
Liverpool and Arsenal transfer target Leon Goretzka 'to decide his future during mid-season trip to Benidorm'
Liverpool and Arsenal target Leon Goretzka will reportedly decide on his future during a mid-season trip to Benidorm.
The Schalke midfielder is also on Spurs' radar, and it is them and the Reds that are leading the race for his signature, according to Mundo Deportivo.
Goretzka is out of contract at the end of the season, and Germany chief Oliver Bierhoff suggested he will move to the Premier League.
He said: "We feel that England, because of the amount of money you have with TV rights, young talented players like Leroy Sané and Leon Goretzka are moving to England and this is not good for our league but also for the quality of our game.
Arsenal keeping tabs on Manchester City starlet Bobby Duncan - the cousin of Liverpool legend Steven Gerrard
Arsenal are one of a clutch of Premier League clubs chasing Manchester City starlet Bobby Duncan.
Scouts watched 16-year-old striker Duncan - the cousin of Liverpool legend Steven Gerrard - score the winner for England under-17s as they beat Portugal this week.
Duncan then trained with the under-20s this week as England are impressed with his progress as the latest talent to emerge from City’s academy.
But several Premier League clubs are watching developments on Duncan to see whether they could lure him away.