Arsenal are set to lose out to Roma in the battle to sign Kostas Manolas after the Italians had a £10.3 million bid accepted for the defender, Goal understands.

The Gunners have been working on a deal for the Olympiakos centre-back for the last fortnight and held talks with his representatives in the UK last Friday in an attempt to thrash out terms.

But Roma have offered more than £2m more than the £8m Arsenal were willing to pay and have also put together a five-year package to entice the Greece international to Serie A.

Roma have moved quickly as they line up a replacement for Moroccan star Mehdi Benatia, who is closing in on a £30m transfer to Bayern Munich.

Arsenal are now weighing up alternatives to Manolas as Arsene Wenger seeks a replacement for Thomas Vermaelen, who joined Barcelona a fortnight ago.

Goal understands that the Londoners have made contact with the representatives of West Ham's Winston Reid and they are also considering Manchester City's Matija Nastasic.