ARSENAL have been dealt a transfer blow with Atletico Madrid the new favourites to sign Lautaro Martinez, according to reports.
The Gunners are on the hunt for a new striker with Alexandre Lacazette's contract expiring next summer.
And they had identified the Inter Milan striker as a potential replacement with the Argentine expected to leave the San Siro.
He even switched agent to Alejandro Camano who sealed team-mate Hakim Achraf's transfer to PSG this summer.
However, AS in Spain state Atletico want to wrap up a deal ahead of Arsenal.
The Italian giants Inter could target Lazio ace Joaquin Correa as a replacement transfer if they lose their current star.
Martinez, 23, has 49 goals in 132 Inter appearances and helped them to the Serie A title last season.
There are two years left on his current contract, which includes a £100million release clause.
Arsenal made an ambitious enquiry to see if they could land the forward amid conversations over Hector Bellerin.
Martinez is on a fairly modest salary at Inter – earning around £40,000 per week – although he would likely increase that significantly should he move to the Emirates.
However, additional reports suggest he does not fancy the transfer, especially with no European football on offer under Mikel Arteta next season.
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Barcelona were previously interested but are financially wrecked so need to make serious cuts to the wage bill.
And that could pave the way for Atleti to swoop.
Martinez has just returned to Milan following his summer exploits winning the Copa America with Argentina.
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