Arsenal are set to lose out on yet another transfer target with Luiz Gustavo poised to join Wolfsburg.

Having lost out to Napoli for Gonzalo Higuain this summer and the pursuit of Liverpool’s Luis Suarez looking likely to end in failure Gunners boss Arsene Wenger is under pressure to make major signings.

Gustavo looked like being the first big-name arrival at the Emirates this summer with Arsenal tabling an offer for the Bayern Munich midfielder earlier this week and the Brazilian subsequently admitting he would be keen on a move to north London.

However Wolfsburg have stepped in with a big-money offer and Gustavo is on the verge of completing a switch to Bayern’s Bundesliga rivals.