Arsenal Transfer News: Latest on Raheem Sterling and Jackson Martinez Rumours

Arsenal manager Arsene Wenger "will enter the bidding" for Liverpool's Raheem Sterling, despite publicly suggesting the Gunners won't spend massive amounts on individual stars this summer.

John Richardson of the Express reports the Emirates Stadium is Sterling's "preferred destination" because he would like to return to London, having represented Queens Park Rangers before moving to Anfield. However, it is suggested Manchester City remain "favourites" after having a bid of £25 million, plus £5 million in add-ons, knocked back by Liverpool.

The Merseyside club are looking to receive £50 million for the 20-year-old winger, according to Richardson's report. In May, Wenger admitted he won't be spending "stratospheric" amounts on players during the summer because Arsenal don't have the finances to do so, per the Mirror's John Cross.

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Mesut Ozil's £42.5 million arrival and Alexis Sanchez's £35 million deal have propped the north London side's last two summer transfer windows up, however.

Sterling could develop into a world-class player under Wenger's tutelage, but it's difficult to shake the assessment he'd be anything other than a luxury signing. Arsenal can deploy Ozil, Sanchez, Danny Welbeck, Theo Walcott, Alex Oxlade-Chamberlain, Joel Campbell and Serge Gnabry in similar positions to Sterling.

Even though his ability to slot in across the front line would be useful, he wouldn't bring anything new to the club.

The Gunners offered a notorious bid of £40 million and one pound for Luis Suarez when he was at Liverpool, one year before he joined Barcelona. Having won the treble during his first term with the Blaugrana, Wenger and Arsenal fans may be wondering what could have been if he headed to London. The French boss shouldn't let this happen again and must push through the signing of those he desperately wants.

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With that in mind, the ongoing situation surrounding Porto striker Jackson Martinez is likely to frustrate. It seemed he had joined AC Milan, noted by Porto president Jorge Nuno Pinto da Costa, reported by Ed Aarons of the Guardian. However, word from the player's agent suggests otherwise.

"Jackson didn't say anything about Milan because there was no need to," noted his representative Luiz Henrique Pompeo, reported by David Wright of the Express. "Nothing has been decided yet." Football Italia reports Martinez has "turned down more lucrative offers from Arsenal and Manchester City because he believes in the Serie A side's project."

Martinez has played it coy, as reported by A Bola (h/t Simon Bajkowski of the Manchester Evening News): "I'm as close to Milan as I am to other clubs," he said. "In the next few days I will decide my future."

David Amoyal, writer for GianlucaDiMarzio.com, believes Milan will carry out a medical during Martinez's Copa America schedule next week. He made just an eight-minute substitute appearance in Sunday's 1-0 loss to Venezuela, per WhoScored.com.

B/R UK's Andy Brassell recently looked at other signings the Gunners could make if Martinez eventually confirms a San Siro move:

Wenger's squad is at an interesting stage. Consecutive FA Cup wins is excellent for the supporters' thirst to land silverware, but Arsenal haven't mounted a genuine title challenge in years. They have made progress, there's no doubt about it, but a club of this size should be pushing Chelsea all the way to the English crown.

Sterling and Martinez would be quality signings. Spending excessively on either would go against Wenger's recent ethos, however, and could waste money that may be better spent elsewhere.