Arsenal are in talks to sign Valencia defender Shkodran Mustafi, according to Sky Germany.
It is understood that no offer for the 24-year-old Germany international centre-back has yet been made to the Spanish club.
Mustafi has a release clause of £42.1m but Sky Germany understand that Arsenal may be able to sign the German for £25.3m plus a further £8.4m in add-ons.
Mustafi trained with his Valencia team-mates for the first time on Thursday following his post-Euro 2016 break and his agent is expected to fly to Spain to discuss the transfer fee with Valencia.
Former Everton defender Mustafi has been with Valencia since 2014 when he transferred from Sampdoria and has made over 60 La Liga appearances.
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He also has 12 caps for Germany since his debut in 2014, and impressed at centre-half during Euro 2016 in France.
Mustafi previously was an Everton academy graduate but failed to make a first-team appearance before leaving in 2012.