Chelsea and Arsenal are set to battle Wolfsburg for Bayern Munich midfielder Luiz Gustavo according to reports in Germany.

Gustavo is believed to be surplus to requirements in Pep Guardiola’s squad with the former Barcelona boss already having the likes of Franck Ribery Arjen Robben Mario Gotze Bastian Schweinsteiger Javi Martinez Toni Kroos and new signing Thiago Alcantara at his disposal.

Both Arsenal and Chelsea are thought to be interested in bringing the 26-year-old to the Premier League although the duo face stiff competition from Wolfsburg who are leading the chase.

Gustavo has hinted he could leave the Allianz Arena this summer and Arsenal were linked with a £15m bid for the Brazilian international only last week.