Arsenal Transfer News: Latest on Mesut Ozil and Nolito Rumours

Mesut Ozil's terrific form so far this season has reportedly caught the eye of former club Real Madrid, who are looking for a replacement for the potentially outgoing James Rodriguez.

According to Spanish outlet Don Balon (via the Telegraph), James has fallen out with Real manager Rafael Benitez, and Arsenal's Ozil is seen as the "ideal replacement" for the Colombian should he leave the Bernabeu.

The German joined the Gunners from Real in 2013 for £42.4 million after spending three seasons at Madrid.

He has previously been frustratingly inconsistent at the Emirates but this season has become the creative centrepiece for all of Arsenal's best attacking work, providing more goalscoring chances than any other player in Europe's top leagues, per ESPN FC's Dale Johnson:

Ozil's continued fitness has been a huge boon for manager Arsene Wenger as he has lost key contributors such as Francis Coquelin, Alexis Sanchez and Santi Cazorla, a factor that could play a big role in the Premier League title race, per Bleacher Report's Sam Tighe:

Should Ozil stay fit and in form, Arsenal may well be able to cope while their other crucial players return.

Potential rumours of Real interest in Ozil will be unwelcome in north London, as they may distract the 27-year-old.

The Gunners would surely be loath to let Ozil return to Real, and they are reportedly looking to tie him to a new contract as soon as possible that would make him the best-paid player in the club's history, per Wayne Veysey of Football Insider.

Given his current form and influence, he is deserving of such reward with his current deal set to expire in 2018.

If Arsenal fail once again this season to win the Premier League or the Champions League, though, Ozil could perhaps be tempted to return to the Bernabeu, where his trophy prospects would likely be boosted—he won a La Liga title and a Copa del Rey while with Los Blancos.

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Meanwhile, Arsenal's reported January move for Celta Vigo forward Nolito could be under threat after the Spaniard picked up an injury on Saturday.

Per Spanish outlet Mundo Deportivo (via Joe Short in the Express), his fitness issues could prevent him from making a move in the new year as Arsenal—and other suitors Barcelona—need ready-for-action additions.

Indeed, a fit Nolito could be an excellent addition at Arsenal to provide top-quality cover for Sanchez on the left flank, having netted eight goals and provided five assists in La Liga this season, per WhoScored.com.

However, an injured Nolito would be of little use to Wenger, and Spanish football expert Guillem Balague has indicated Arsenal were never interested in him in the first place:

Barca does seem the more likely destination for the 29-year-old Nolito given that he has previously been part of the setup at the Camp Nou and Wenger historically does not bring in new players nearing 30.

The latest injury to the Celta star now makes it even less likely that Arsenal will go in for him in January.