Arsenal Transfer News: Major Sami Khedira Setback, Latest on Andre-Pierre Gignac

Arsenal's seemingly interminable pursuit of Real Madrid's Sami Khedira has taken another twist as Manchester City have now reportedly entered the race to sign the defensive midfielder.

This is something of a setback for the Gunners who desperately need a player of Khedira's quality in the deep-lying midfield role but hardly have the resources to compete with the Sky Blues in a transfer battle. 

The German international looks inevitably set to leave the Bernabeu as negotiations surrounding a contract extension have stalled, and City are hoping to tempt him to the Etihad, per the Daily Mail (h/t Alex Harris in the Daily Star)  

With Khedira's contract set to expire next summer, Real will likely look to recoup some cash for him in January and are reportedly open to accepting an £8 million offer.

Arsenal and City are easily capable of meeting this fee, the key will likely be in the personal terms each club can offer to Khedira and, in this regard, the Sky Blues have a significant financial edge.

However, the Gunners must be prepared to scrap for the World Cup winner's signature as he could be essential to their future prospects, per the Mirror's Oliver Holt:

Currently, Wenger only has Mikel Arteta and Mathieu Flamini to call on in defensive midfield, neither of whom are consistently convincing with the Gunners' weak defence often left exposed.

Khedira would go a long way to fixing this problem as he would bring a drive and poise to the centre of the park as well as a terrific range of passing which would be advantageous in releasing Arsenal's broad range of attacking talent.

Wenger is reportedly looking to add further to that attacking unit with the recruitment of Marseille striker Andre-Pierre Gignac and the Ligue 1 leaders have admitted they may not be able to keep him for much longer.

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The 28-year-old has bagged 10 goals in 11 matches in the league this season, per WhoScored.com, but his contract expires at the end of the term and Marseille president Vincent Labrune is not confident they can satisfy him with a new deal, per the Mirror:

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It’s going to happen because employer contributions and taxes have gone through the roof in France. We would like to keep him, but it seems to me utopian to think that he will lower his salary to stay with us. His agent is right to say that, with his current displays, he is more likely to get better offers. But he loves the city and the club, so we’re going to talk.

"

Arsenal and Newcastle are reportedly both interested in bringing the Frenchman to the Premier League with the Gunners likely a more attractive proposition considering their world standing.

Gignac could certainly be a superb addition to the Arsenal squad as their proven strikers are currently limited to only an injured Olivier Giroud and Danny Welbeck.