Tottenham and Arsenal are set to lock horns over the signature of Swiss international Josip Drmic, according to talkSPORT.
Arsenal are in the market for a striker as backup to Olivier Giroud, who has struggled to carry the team on his own this season.
The Frenchman has started in the majority of Arsenal's games in all competitions owing to a lack of backup, something which Arsene Wenger will be looking to address in the summer.
The Gunners have Yaya Sanogo and Nicklas Bendtner in the reserves but the Dane is expected to leave the club in the summer after falling out of favour with the manager.
Arsenal are also likely to call upon Joel Campbell, who is currently on loan at Olympiacos and are expected to be in the market for another world class striker to complement the creative quartet of Mesut Ozil, Santi Cazorla, Jack Wilshere and Aaron Ramsey in midfield.
Meanwhile, Tottenham need a striker to replace Jermain Defoe who has move to FC Toronto in January.
The striker has not been at his best for Spurs this season and had quickly fallen out with former manager Andre Villas-Boas before being unceremoniously transferred to the MLS by Tim Sherwood.
Spurs currently have Emmanuel Adebayor and Roberto Soldado in attack but Sherwood is on the lookout for a striker who is quick on the ball and has an eye for goal, something which their new Spanish recruit has been incapable of doing all season.
Drmic, who currently plays for Bundesliga club Nurnberg, has scored 15 goals and assisted three in 26 appearances and at 21 years old, has a great career ahead of him. Nurnberg will be hoping that both clubs get into a bidding war for the player, something which will help them extract a sizeable fee for their star asset.
Tottenham have a crucial game against Liverpool on Sunday where a win will take them back to challenging for the top four with Arsenal currently struggling to coup points.