Gunners target could be Bernabeu-bound.
Real Madrid are reportedly stepping up their interest in signing highly-rated Inter Milan youngster Mateo Kovacic, according to Spanish source Fichajes.net.
The Spanish giants are in the market for new signings in midfield at the moment, and want to bring in a top prospect for the future as they pursue Kovacic alongside Brazilian prospect Lucas Silva, another rumoured target.
The likes of Arsenal and Juventus have also been linked as admirers of Kovacic, who has been highly impressive in establishing himself as a key part of this Inter side from a young age.
Still only 20 years old, the Croatian has made 12 starts in Serie A this season, contributing two goals and one assist, showing himself capable of playing in a number of different midfield roles, either as a deep-lying playmaker or a more advanced role, and even wide on the left hand side.
Kovacic could command a fee of around £11.7m, which looks a potential bargain for such a promising player, and it is thought that he himself is keen to move to the Bernabeu.