Arsenal face competition for Bayern Munich midfielder Luiz Gustavo from London rivals Chelsea as both clubs attempt to convince the Brazilian to make the move to the Premier League.

Gustavo played 36 games in all competitions for Bayern last season as the German club enjoyed unheralded success that saw them win the Bundesliga, the DFB-Pokal Cup and the Champions League thanks to victory over domestic rivals Borussia Dortmund.

The 26 year old helped Brazil win the Confederations Cup earlier this summer and impressed whenever handed the chance to play in a defensive midfield role for Bayern, but after the acquisition of Thiago Alcanatara from Barcelona, Gustavo has been informed that he can leave the club.

Wolfsburg were said to be keen on signing the Brazil international but German newspaper BILD believe that there is strong interest from both Arsenal and Chelsea.

The Gunners have made just one signing this summer in French striker Yaya Sanogo, while Chelsea have strengthened impressively with the acquisitions of Marco van Ginkel, Mark Schwarzer and Andre Schurrle.

Gustavo would certainly add quality to either London club having spent the last two two-and-a-half years competing with some extremely talented midfielders at Bayern Munich.

Bild report that Arsenal and Chelsea would have to bid in the region of £15m for the defensive midfielder who Bayern CEO Karl-Heinz Rummenigge suggests may want to continue playing in the Champions League next season.

"We're going to resolve the situation calmly," Rummenigge told Sport 1."I do not think that we will come up with a decision within days.

"It's important of course whether Luiz wants to join a side without a European ticket. Maybe he wants something bigger?"

Jose Mourinho's side have qualified for the group stage of the Champions League, while Arsenal must come through a play-off game later this month.

While European competition could be a factor both sides will have been boosted by the fact that Bayern have made it clear that Gustavo will leave the club.

"In any case, he is the only player who may leave," confirmed the Bayern CEO. "We will not sell any more players in order to keep the squad intact. Bayern do not have a shallow squad, but we must take into account all competitions.

"We are playing in the Bundesliga, the Champions League, the Club World Cup. We need just such a squad."