Manchester United have failed with a $20 million bid for highly-rated midfielder Shinji Kagawa.
Borsussia Dortmund are expecting $25 million for the Japan international, who has just one year left on his contract. However, it is understood a bid of around $22-23 million will persuade Dortmund to let go of the player, who has refused to sign a new contract.
Kagawa cost Dortmund just $480,000 from Cerezo Ozaka and the Germans will make a handsome profit, no matter what transfer fee is. United are expected to come with a higher bid in a few days.
Kagawa had a highly successful season with the German champions, scoring 13 goals from midfield and acting as the creative force behind Dortmund's double-winning season.
Meanwhile, Arsenal fullback Bakary Sagna has said he is confident the Gunners can keep their captain Robin Van Persie at the club while being excited about the prospect of Yann M'Vila joining the North London side.
"I'm confident Robin will stay," Sagna told the Daily Mirror. He was a complete professional from the beginning until the end and helped us get to third. We want to keep him," the Frenchman who was ruled out of the Euros after suffering a broken leg added.
Reports suggest Arsenal are prepared to let Van Persie see out the final year of his contract and let him go for nothing after next season, rather than cash in on the Dutchman.
Arsenal have been heavily linked with a move for M'Vila, with Arsene Wenger known to be a keen admirer of the defensive midfielder. Sagna hoped his compatriot would come to the Emirates. "We want more players to come to the team. Lukas Podolski has arrived already and M'Vila can make a big impact.
"I'm not sure about his English, but it took me time to learn. But I think he would suit us, Arsenal are a French-speaking team and it will help him settle."
M'Vila, who is also interesting Inter Milan, has said he doesn't know where his future lies and will decide after the European Championships.
Jan Vertonghen, who was close to signing for Tottenham, has said he is open to move to Arsenal, but only if the move to their arch-rivals break down. It is, however, understood that Wenger is no longer interested in the Belgian and is looking at other defensive targets.
Arsenal are reportedly in for Lazio captain Stefan Radu. According to Sky Sports both Manchester City and Arsenal have been keeping track of the versatile defender, who can play both as centreback and fullback. Wenger is also keeping tabs on long-term target Matias Suarez of Anderlecht, with Bayern Munich reportedly keen on the Argentinian striker. The Gunners are also looking at the possibility of signing Italian veteran Allesandro Del Piero. The striker is out of contract at Juventus and has said he would be open to a move to the Premier League.
Chelsea have stepped up their pursuit of Hulk, with representatives from both parties concerned reportedly meeting. However, the transfer fee that Porto are expected to command is still a big stickler and Chelsea hope a negotiation can be made.
"At the moment, Chelsea is a club that is bigger than ever, because they have become European champions and are without doubt one of the biggest in Europe," Hulk's agent Teodoro Fonseca told Brazilian media. "A lot of people would like to play there and of course it would also please us a lot."
