Arsenal Transfer News: Latest Rumours on Lorenzo Insigne and Alexis Sanchez

Napoli forward Lorenzo Insigne is set to give Arsenal the cold shoulder and sign a new deal with the Serie A giants.

That's according to Italian outlet La Gazzetta dello Sport (via James Whaling of Daily Mirror), which reported that the Italy international will soon open contract talks with a view to extending his stay at the club.

Arsenal have reportedly been keeping tabs on the forward amid stuttering contract negotiations, along with Liverpool and Tottenham Hotspur, but it seems Naples will remain his home for the foreseeable future.

Francesco Pecoraro/Getty Images

Insigne is under contract with Napoli until the summer of 2019 but is demanding in excess of £70,000 per week to prolong his time with the club.

The 25-year-old has been one of the club's outstanding players in recent years and played a fundamental role in their success.

With the ability to play as a striker or slot into a wide or deeper role, Insigne is as versatile as they come and would thus likely be appealing to Gunners manager Arsene Wenger.

However, it seems the Arsenal boss may have to add Insigne to an ever-growing list of forwards who have slipped through his fingers and continue his hunt for that world-class frontman.

Francesco Pecoraro/Getty Images

In other news, Arsenal legend Paul Merson recently suggested that Alexis Sanchez is too good to play for the Gunners.

Talking to Sky Sports, he spoke about the Chilean's failure to put pen to paper on a new deal at the Emirates Stadium and said that he deserves to be playing for a "top" team:

"

My problem is Sanchez. He needs to sign and he hasn't signed—and that's very worrying for Arsenal. He probably goes out there and plays and thinks "what chance have I got here, we ain't good enough? He's a top, top player and he is playing for a top, top club. Don't get me wrong, it's a phenomenal football club but he's not playing for a top, top team.

"

Catherine Ivill - AMA/Getty Images

Sanchez's deal at the Emirates expires in 2018, and fans will be desperate for Wenger to work his magic and tie the club's star man down to more years in north London.

Should Arsenal surrender the 28-year-old's services, they could be in something of a striker crisis and would have to work wonders in the transfer market to fill his shoes.

The Gunners are still in the hunt for the Premier League title but need to improve their form drastically and pray for a slip-up from runaway leaders Chelsea.