Arsenal are reportedly closing in on a deal for Valencia defender Shkodran Mustafi. The German centre-back is being chased by the North London club and Arsenal are moving towards a breakthrough in their negotiations.

The two parties are apparently edging towards agreeing a fee worth in the region of £20m ($25.9m) for the 24-year-old defender, who was left out of Valencia's friendly against a Nigeria all-star team on Wednesday (10 August).

However, Mustafi is unlikely to be signed in time for Arsenal's opening game against Liverpool, meaning new signing Rob Holding is set to make his Premier League debut, according to The Times. The Gunners are, of course, already without the likes of Per Mertesacker and Gabriel through injury.

The reported move for Mustafi comes after Arsenal manager Arsene Wenger admitted the club must adjust to the new reality of transfer spending. "We have to follow the prices paid by other people," the Arsenal boss said. "That has gone up because the availability of money is much higher."

Meanwhile, Arsenal have reportedly ruled out interest in Riyad Mahrez, with Leicester City hopeful their star man will follow in the footsteps of Jamie Vardy by agreeing a new deal at the King Power Stadium.