Arsenal are tracking Borussia Dortmund midfielder Ilkay Gundogan. The Mirror believes the Gunners are looking to the German international to strengthen their midfield and will pay last season's Champions League finalists £20m.

The 22-year-old was one of Jurgen Klopp's stars last season, making 44 appearances in all competitions; he scored four goals and created three more, including his side's only strike in the 2-1 defeat to Bayern Munich in the Champions League final.

Ilkay Gundogan

It is understood Gundogan will arrive as a long-term replacement for Spaniard Mikel Arteta, who turns 32 next year.

Arsene Wenger is likely to have to work hard to sign his target though, with Gundogan having already committed his future to Dortmund. The midfielder's father was quoted as explaining that his son needed more time to develop as a player and felt he could only do that in Germany.

"I am keen to ensure he (Ilkay) remains with Borussia Dortmund. He is doing fine so it's a bit early to move to a club in England or Spain at this point in time. Borussia Dortmund will be coming up with an offer of a new contract soon. We will be able to oversee things much better then," his father told Kicker.

Gundogan's contract expires in 2015.

Meanwhile, sporting director Michael Zorc has confirmed talks and believes the player will sign in the near future.

"We are keen to sign new terms with Ilkay Gundogan. I am able to confirm that we have held talks with his father Irfan and we feel confident he will sign," he told German newspaper Westdweutche Allgermeine Zeitung.

Should the Gundogan deal not go through, Wenger has reportedly lined up Bayern Munich midfielder Luis Gustavo as an alternative. The arrival of Spaniard Thiago Alcantara and the fine form displayed by his compatriot, Javi Martinez, has thrown the Brazilian's future at the Allianz Arena up in the air.

The Bavarians are open to the 26-year-old leaving and German newspaper, Kicker, believes a deal with Bundesliga rivals Vfl Wolfsburg is possible. However, Gustavo may opt for north London as the Gunners can offer a shot at Champions League football.

"If Wolfsburg agrees personal terms with Gustavo, we will then negotiate. If Luiz leaves the club, we will not buy another player," Bayern Munich CEO Karl-Heinz Rummenigge told Kicker.

"If Bayern allows it, we will talk with every big and serious club out there, including Wolfsburg," his agent Roger Wittmann added.