Arsenal are confident of securing a summer deal for Borussia Monchengladbach midfielder Granit Xhaka, sources close to the player and the Premier League club have told ESPN FC.
Xhaka has been a long-term target for Arsenal boss Arsene Wenger with the club tracking the Switzerland international for the past 12 months.
The 23-year-old has impressed for club and country in recent seasons and is regarded as one of the best young midfielders in Europe.
Wenger has made a new defensive midfielder one of his top priorities to bolster his squad for next season and Xhaka is the Frenchman's top target.
Liverpool have also been credited with an interest in Xhaka, but sources have told ESPN FC that Arsenal are in pole position to land the combative midfielder.
The sources added that Arsenal have opened preliminary talks with Monchengladbach over a deal for Xhaka and that the player is keen on a move to Emirates Stadium after previously saying it was his "dream" to play in the Premier League.
Monchengladbach are resigned to seeing Xhaka move on this summer and, although the German club are demanding a fee of £34 million and Arsenal are not willing to pay more than £30m, both clubs are confident a compromise can be found to see Xhaka make the move to the Premier League this summer.
Speaking on Wednesday, Wenger played down talk of a move for Riyad Mahrez, while stressing that Mesut Ozil and Alexis Sanchez will be remaining at the club.
Wenger also said Jack Wilshere could be back in the Arsenal squad for Sunday's visit to Sunderland but will likely not be included against West Bromwich Albion on Thursday.