According to a report published in The [UK] Telegraph, Arsene Wenger would have a budget of around £40 million to improve his squad next season.
These funds will cover transfer fees as well as wages of new signings and the proceeds from transfers of current squad members would be added on to the transfer kitty bag.
The futures of Cesc Fabregas, Gael Clichy, Denilson, Tomas Rosicky and Nicholas Bendtner could be on the line and if Arsene Wenger choses to depart with some of these players, the captain of Arsenal himself would fetch more than the allocated budget of £40 million.
Gary Cahill, the Bolton centre-back amongst others has been rumored to be heavily linked with Arsenal and would prominently be linked with the club during the summer transfer window.
The funds allocated to Wenger come from the cash balance of £110 million from the last two seasons, most of which was accrued by the sales of Emmanuel Adebayor and Kolo Toure to Manchester City.
That money will also go towards increasing operating costs, such as offers to improve the contracts of key players like Samir Nasri and Johan Djourou.
Arsene Wenger has been criticized for not strengthening their defense in the winter transfer window and the manager would be keep to add a mix of both experience and quality to his defense and goal keeping department.
Arsenal have struggled in the goal-keeping department with four goal-keepers being tested this season. However Wenger would be delighted by the progress of Wojciech Szczesny and Lukasz Fabianski, as the former in particular has impressed of late and certainly proved his credentials in the North London derby this week.