The Gunners have harboured a serious interest in Balotelli and it is thought the north London outfit will get some help from their sponsor, Puma, to push through a deal.

While AC Milan owner Silvio Berlusconi has been coy about whether Balotelli will stay at the San Siro next season, Mandzukic appears to be surplus to requirements at Bayern Munich.

Arsene Wenger is working as a pundit at the World Cup but has been scouting a number of targets including Ivory Coast right back Serge Aurier, who is viewed as a replacement for the recently departed Bacary Sagna.