Arsene Wenger claims Arsenal will remain alert during this transfer window but will make an approach only if they find the right players.

The Gunners have already sent striker Marouane Chamakh and defender Johan Djourou on loan, to West Ham United and Hannover respectively, and are expected to trim the team further by moving several fringe players, including Andrei Arshavin and Sebastien Squillaci. However, Wenger remains adamant he will make additions only if he finds players he feels can improve the present squad.

Arsene Wenger

"We are in the market and if we find the right players, we will do something," The Independent quoted Wenger.

The north London outfit suffered a major setback in their pursuit of Barcelona forward David Villa, with the Catalan club's president Sandro Rossell insisting that the player would not be allowed to leave in January.

"I completely rule out the transfer of Villa during the winter market. He is ours and we need him, there is a lot of the season left," the Barcelona chief stressed.

Vargas Set to Join Sao Paulo

Meanwhile, Sao Paulo president Juvenal Juvencio has stated that the club will announce the signing of Napoli forward and reported Arsenal target Eduardo Vargas this week.

The Chile international, who has fallen down the pecking order at Naples, had been linked with a host of European clubs, including the Gunners. However, the Brazilian giants have now moved to the head of the queue and are in pole position to snap up their man.

"We'll define his signing this week. Values and intentions have been agreed. Now we have to wait, we will have him for a year and a half. We believe he will be an important player for us," Juvencio told Sky Sports.

Vargas has managed only 19 Serie A appearances and is yet to score his first league goal, after moving to Napoli from native side Universidad de Chile last year.