Arsenal have kick-started a late spending spree, as the club has already annouced the signing of Park Chu Young from AS Monaco and are also on the verge of signing Andre Santos from Fenerbahce and Per Mertesacker from Werder Bremen.
Reports from Germany indicate that Arsenal's £20 million-plus bid for prodigious talent Mario Goetze has been turned down by Borussia Dortmund.
Arsenal have also lined up Chelsea midfielder Yossi Benayoun as a last-ditch signing if they fail in their attempt to sign their first-choice midfield targets.
Yohan M'Vila could also arrive on the deadline day if Arsenal step up their interest in the exceptionally talented French defensive midfielder.
The latest bit of news is from Florence, and could be a deadline day signing if Arsenal step up their interest with a bid for Vargas.
The Peruvian is a brilliant left-sided player and could be signed for around £15 million. At 27, he would offer experience and could be an ideal replacement for Samir Nasri on the wings, especially on the left flank. He can also play at left back.
Earlier in the transfer window, I had covered Vargas in detail as a replacement for exit-bound Gael Clichy.
Surprisingly, on the deadline day, he may well become an Arsenal player under different circumstances.
Arsenal are desperate for new players, and Lille's hard stance over Eden Hazard may force Wenger to bid for the talented Peruvian.
This would be a quality signing. Watch this space; this rumour certainly has legs.