Arsenal transfer news LIVE updates: Mahrez talks, Sanchez to Man City after Lacazette deal

ARSENAL TRANSFER NEWS LIVE – Follow all the latest updates coming out of the Emirates Stadium

Wednesday 5 July

07:15: Arsenal are edging closer to signing Riyad Mahrez from Leicester, according to Italian journalist Tancredi Palmeri.

It is said talks are ongoing and proving positive, despite the Gunners’ failed attempt to sign him last summer.

The Algeria international has made no secret of his intention to leave Leicester this summer in search of regular European football.

06:45: Arsenal have agreed to smash their transfer record to sign Alexandre Lacazette, but stand to lose star man Alexis Sanchez to Manchester City.

Lacazette completed a medical yesterday as he ties up a move from Lyon for a fee which could reach £52m, eclipsing the £42.5m Arsenal paid for Mesut Ozil.

But while the spending will not stop there for the Gunners, they still face losing Sanchez, with City increasingly confident they will get him.

Arsenal have made it clear they do not want to sell the unsettled Chile star to a Premier League rival.

But with Bayern Munich president Uli Hoeness confirming yesterday that Sanchez is too expensive for the German giants, they may have little option.

Sanchez has a year left on his contract and is prepared to see it out and leave on a free next summer unless he gets his way.