Arsenal are in talks to sign Villarreal centre half Gabriel Paulista, confirmed manager Arsene Wenger.
Paulista, 24, hinted at the weekend his agent had been contacted by the Gunners over a January move with his current manager Marcelino recently admitting the club would sit down to discuss terms with the Premier League club.
Speaking to the press on Thursday, Wenger claimed "there is a chance" of the club sealing a deal for the Brazilian defender and added that his arrival may not be the end of the club's January spending.
"Talks are progressing well. Can we find an agreement? There's a chance," Wenger said.
But when asked if the defender's arrival will be the last at the club this month, the Frenchman responded, "Not necessarily".
"We are ready to pay the price for a player if he is good enough. If the price is right, we will pay"
The Arsenal boss also confirmed the club are likely to tie down Francis Coquelin to a new contract. Wenger recalled the 23-year-old from a loan spell at Charlton Athletic in December and the holding midfielder has excelled in the absence of Mikel Arteta, who is expected to be sidelined for three months.
Coquelin's current deal expires at the end of the season but the club hope to resolve his future in the coming weeks.
"I saw that he made huge improvements in training so I sent him on loan for match practice," Wenger continued. "He took that challenge and he's done very well. We will offer him a new deal."
On Thursday, Arsenal confirmed the arrival of 17-year-old Kyristian Beilik from Legia Warsaw for a fee believed to be in the region of £2.5m.
While it remains to be seen whether the highly rated teenager will have a role in the Arsenal first team this season, Wenger has no plans to throw him straight into the first team in the coming weeks.
"He has only just come from Poland so he is not fit because they had a winter break. He won't play."