Arsenal Transfer News: Major Deals and Latest Rumours Connected to Gunners

Arsenal have been linked with Real Madrid midfielder Sami Khedira for quite some time, but the latest reports concerning the player are not positive for the Gunners.

With the German World Cup winner's contract at the Bernabeu set to expire in the summer, Marca is reporting that Khedira has agreed to sign for Schalke, a huge blow for Arsenal.

Marca's report suggests that the deal is done but that it will not be made official until June, with Khedira choosing the Miners over other suitors because he wishes to return to Germany.

The 27-year-old joined Real from Stuttgart in 2010, and a return to the Bundesliga now seems likely despite consistent links with Premier League clubs, per Sky Germany's Jan Aage Fjortoft:

Since winning the World Cup last summer, Khedira has endured a tricky season with Real. He has been plagued by injury and drawn-out speculation regarding his contract situation, and he has only made three starts in La Liga this term, per WhoScored.com.

He is, however, undoubtedly still one of the best defensive midfielders in the world, hence Arsenal's reported interest in him, considering their long-term weakness in the position.

Thus, Schalke's mooted signing of Khedira is potentially a phenomenal piece of business and a huge blow for Arsenal, who will now need to look elsewhere to strengthen in the middle of the park. B/R UK's James McNicholas discusses some potential alternative options below:

Arsenal may also struggle to sign up 24-year-old defensive target Aleksandar Dragovic, with Dynamo Kyiv keen to keep hold of the Austria international.

Dynamo boss Sergei Rebrov has made it clear that he wants to retain the services of the tough-tackling centre-back beyond the upcoming summer transfer window, per the London Evening Standard:  "You are asking about one of the best players in my team and I don't want to lose this player. He is a top-class player and I hope he will stay with us."

Dragovic is a target not just for Arsenal but for Manchester United also, per talkSPORT, and Rebrov could be left disappointed if either side makes a bid for the defender, with the lure of the Premier League surely very strong.

Despite signing Gabriel Paulista in January, Arsenal could still do with further strengthening in the centre of defence, and Dragovic would bring physicality and intelligence to the back line at the Emirates Stadium.

With Arsene Wenger reportedly set to have £50 million to spend in the summer, per The Telegraph, Dragovic should definitely be a top target, as he could rectify a long-term Arsenal problem of lacking composure at the back.