Arsenal Transfer News: Latest Rumours on Julian Draxler, Paulo Dybala

The first deals of the January transfer window have already been completed, and while Arsenal have yet to make a big splash, the Gunners should soon be adding some big names to their squad as well if the latest rumours are to be believed.

Most fans will agree the club's biggest needs lie in defence and at the holding midfielder position, but it appears Arsene Wenger is also looking at several attacking targets to boost his team's chances of ending the Premier League season in the top four.

Let's have a look at what's happening with those targets.

Manchester City in for Julian Draxler

Mike Hewitt/Getty Images

Schalke 04 youngster Julian Draxler has been a long-term target for Arsenal, but according to the Daily Star's Paul Hetherington, Manchester City are ready to rival the Gunners for his signature.

Schalke are reportedly one of the clubs interested in Matija Nastasic, and the Citizens are ready to exploit said interest by using the Serbia international to obtain Draxler:

"

A Schalke approach for City defender Matija Nastasic prompted the Premier League champions to sound out the German club about £25million-rated Draxler.

City boss Manuel Pellegrini would like first option on wide midfielder Draxler, 21, who has repeatedly been linked with Arsenal.

Draxler is understood to favour a move to the Premier League but has had an injury-hit season after being part of Germany's World Cup-winning squad

"

The 21-year-old attacking midfielder has struggled with injuries during the 2014-15 campaign, making just seven Bundesliga starts, according to WhoScored.com. When healthy, he remains one of Germany's best attacking talents, something he showed with this phenomenal assist:

The Gunners don't have a clear need for another attacking midfielder, a position that is already well stocked, but Wenger has been linked with a move for Draxler for so long that one has to assume he's now almost desperate to bring the youngster to the Emirates.

And with Lukas Podolski on his way to Inter Milan, via Inter manager Roberto Mancini, a spot has opened up in the Gunners' attacking rotation:

The financial details of a move would be key. As explained by Bleacher Report's Ryan Bailey and Janusz Michallik, Arsenal have several areas of need that have to be addressed in the coming weeks:

If the Citizens manage to obtain a first option on Draxler, the eventual transfer fee could sit so high the Gunners simply can't afford to bring the Germany international to the Emirates.

It would hurt to see the talented Draxler move to a rival club after all this time, but given his recent struggles with injury, Arsenal would perhaps be wise to look elsewhere.

Paulo Dybala Also on Citizens' Wish List

Tullio M. Puglia/Getty Images

Apparently, City really like Arsenal's reported transfer targets. According to Gianlucadimarzio.com's David Amoyal, Manuel Pellegrini is also monitoring Palermo youngster Paulo Dybala, who has enjoyed a phenomenal 2014-15 campaign:

"

Paulo Ernesto Dybala has been one of the biggest stars of the Serie A season. The Palermo prospect scored 7 goals to go with 6 assists and his performances have intrigued many big clubs. Arsenal and Manchester City have been following the Argentine closely: the two Premier League clubs could decide to acquire him in the future. 

"

The 21-year-old has been sensational for newly promoted Palermo this season, dazzling Serie A with his athletic ability, dribbling skills and conversion rate. The Argentinian is quickly emerging as one of the world's top attacking talents and the latest in a long line of Palermo imports.

The Sicilians have launched the careers of Edinson Cavani and Javier Pastore in recent years, and Dybala has similar potential. According to Sport Witness, he has already expressed his desire to play for a top club like Arsenal:

Dybala is a budding star who will likely also carry the price tag of a budding star. Palermo paid a significant transfer fee for him back in 2012, and according to the Daily Express' David Wright, the club has placed a £31 million asking price on his head.

While the actual fee will likely be lower, thanks to the economic struggles of Italian football, Dybala still won't come cheap. He is more likely to pick Arsenal over City, however, as the Gunners' attacking rotation isn't nearly as deep as that of the Citizens.

Dybala is a likely summer target, but unless a club is willing to break the bank based on six months of elite-level production, don't expect any movement in January.

Follow @ReverschPass