Arsenal Transfer News: Latest Rumours, Players Wanted by Arsene Wenger

Arsenal target Henrikh Mkhitaryan will not extend his contract with Borussia Dortmund past its current end date of June 2017, the Bundesliga club's CEO, Hans-Joachim Watzke, has confirmed.

Recent reports have suggested the Gunners are "closing in on" signing the versatile midfielder, who is currently valued at around £25 million, with manager Arsene Wenger wanting "to tie up [a] quick deal for" the Armenia international, per Mark Irwin in the Sun.

In a major boost for Arsenal's chances of signing Mkhitaryan, 27, Dortmund chief Watzke has confirmed he will not extend his deal past next summer despite long-term negotiations, per Tom Olver in Metro: "For four months the club have been negotiating with Mkhitaryan, over whether or not he wants to extend with us. Now we know that he will not extend his current deal."

Bundesliga expert Clark Whitney explained the situation further, reporting that Mkhitaryan's agent, Mino Raiola, is not happy with Dortmund's stance, and likened it to the situation ahead of Robert Lewandowski's departure to Bayern Munich on a free transfer in 2014:

If Dortmund are prepared to make Mkhitaryan see out his contract and let him go for nothing next summer then Arsenal will be foiled in their plans to sign him before the 2015-16 season.

However, Dortmund's hand could potentially be forced if Arsenal come in with a big enough offer.

Meanwhile, James Orr in the Sun speculated that because Monika Mkhitaryan—Henrikh's sister and a UEFA employee—recently followed Arsenal on LinkedIn, she may have "confirmed" her brother will move to the Gunners over alternative suitors Manchester United.

He would certainly be a fine signing for Arsenal and would be worth spending big on.

Due to his immense versatility, he could fit anywhere in the Gunners attacking line; on either flank, in the No. 10 role or lying slightly deeper in central midfield.

Mkhitaryan is a very effective goalscorer and an even better creator, having netted 11 times and provided 15 assists in 31 Bundesliga appearances last season, per WhoScored.com.

Here's a look at some of his highlights from the 2015-16 campaign:

Elsewhere, Leicester City boss Claudio Ranieri has commented on striker Jamie Vardy's future after Arsenal triggered his release clause, with Wenger looking to add a top-class goalscorer to his ranks.

The 2015-16 Premier League-winning manager unsurprisingly said he hoped Vardy, 29, would stay at the King Power Stadium for next season, per Sky Italia (via MailOnline's Jonny Singer): "We want to keep him. Arsenal have said they will pay the full release clause, but he hasn't accepted yet. He gets the last word."

Bleacher Report's Dean Jones recently reported that Vardy was leaning towards staying at Leicester and disappointing the Gunners:

The Englishman's 24 goals last season for Leicester helped the Foxes to their startling Premier League triumph, and Arsenal could do with a player equally as prolific, given Olivier Giroud's frustrating inconsistencies.