Arsenal transfer news and rumours live: Second Aouar bid, Mustafi edges towards exit

Hello and welcome to Sunday's Arsenal live transfer blog, where we will bring you the latest stories coming out of the Emirates Stadium.

The Gunners watched on during the goal-fest in the Premier League on Saturday and will do the same on Sunday, as they wait until Monday before locking horns with defending champions, Liverpool.

Mikel Arteta's side have maintained a 100% record in all competitions this season after seeing off Fulham, West Ham and Leicester City, the latter being in the Carabao Cup.

Off the pitch, the Gunners have been active in the market and that looks set to continue heading into the final days of the window, with Lyon's Houssem Aouar and Atletico Madrid's Thomas Partey being the prime targets.

Exits are also on the cards, so it's certainly a busy period and you can keep on top of all the latest news as it happens with our dedicated transfer blog.

Aouar excitement

Arsenal fans are getting rather excited about the prospect of Houssem Aouar joining the club this summer.

Mustafi nears exit

Reports in Italy claim that Shkodran Mustafi is closing in on an exit from the Emirates Stadium.

According to Lazio press Mustafi has agreed personal terms with Lazio and is keen to move back to Italy.

The last hurdle is to agree the bonuses in his contract with the club.

Second Aouar bid

The Gunners have already seen an initial approach rebuffed but are not giving up in their pursuit.

Club president Jean-Michel Aulas indicated earlier today that an offer of £32million (€35million) had been rejected but Arsenal will not be deterred. JoriPress understands the Gunners are ready to increase their offer to £36.5million (€40million) with a further £9million in potential add-ons (€10million).

Aulas' comments indicated a potential readiness to sell but only for the right price. A tweet from his account said: "For Houssem Arsenal is too far from his value: we are counting on him to play a great match in Lorient and lead OL in CL next year."

Aouar has previously been valued by Lyon at around £55million but reports on Friday night, when news of Arsenal's first offer emerged, claimed that the French giants could be forced to lower their price in light of the coronavirus crisis and its impact on football's finances.

The star of Lyon's run to the Champions League, Aouar has been linked with several top European clubs this summer, including Juventus and Manchester City. So far, however, no other club have made a formal offer for his services.

Personal terms for the 22-year-old would not be a problem but Arsenal know from experience that negotiating with Aulas can be a painfully public affair with Lyon announcing a bid they had rejected for Alexandre Lacazette in the summer of 2016.

Lacazette would subsequently move to north London the following year weeks after Aulas had publicly committed to retaining the striker.

A deal for Aouar is certainly not imminent with the Frenchman having been named in Lyon's squad for their trip to Lorient on Sunday.

Arsenal are looking to move on midfielders to make room for Aouar and to improve their financial flexibility as they chase the Frenchman and Atletico Madrid midfielder Thomas Partey.