Arsenal Transfer News: Latest Rumours on Alvaro Morata and Mesut Ozil

Arsenal's hopes of landing Real Madrid star Alvaro Morata have been dealt a big blow, as the striker revealed that he expects to join Chelsea in the summer.

The Gunners have been scouring the transfer market for a top-class forward for a while now, and Morata certainly fits the bill as a 20-goals-per-season frontman.

However, Matt Law of the Daily Telegraph wrote that the Spaniard will choose west over north London, having told close friends that Stamford Bridge will be the next destination in his career.

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New Chelsea boss Antonio Conte has undoubtedly made a huge impact since his arrival and propelled the Blues to the top of the Premier League at Arsenal's expense, but it seems he's also making waves off of it.

Law reported that Morata is a fan of the Italian manager, who set up his move to Juventus before departing to take charge of the national team.

Whether Real Madrid finally sever full-time ties with Morata is another question entirely, though.

One of the Santiago Bernabeu's favourite sons, the 24-year-old has proved a very valuable asset to Real and is often the go-to man when they're in desperate need of a goal.

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Even so, he's often forced to play second fiddle to Karim Benzema under Zinedine Zidane, and Law wrote that Real will consider bids over the £50 million mark.

Arsenal can certainly stump up the cash to get Morata in red and white, but if Chelsea fancy their chances of also testing Real's resolve, the Gunners could once again miss out.

In other news, Arsenal are set to face a battle to keep hold of star man Mesut Ozil amid fresh interest from Barcelona.

According to John Cross of the Daily Mirror, the Gunners have been trying to tie the German down to a new contract for some time, but the midfielder's hesitance has put Barcelona on red alert.

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Ozil is demanding in excess of £250,000 per week—representing a £70,000 pay rise—and Arsene Wenger would need to dig deep to keep him happy.

Bayern Munich are also said to be interesting in taking Ozil off Arsenal's books and could swoop for him in the summer.

The Gunners find themselves in a very familiar position in 2016-17. After a fast start, the wheels are wobbling, and a Champions League place could once again be their only reward.

Questions will be asked of Wenger if that is the eventuality before he builds for the new campaign. He'll be desperate to keep hold of prize assets like Ozil, but fresh quality must be added for Arsenal to have a meaningful shot at the title.