Arsenal are closing in on the signing of Malcom from Bordeaux.
The Gunners have identified the 20-year-old Brazilian winger as a replacement for Alexis Sanchez.
And according to the Manchester Evening News, Arsenal are now confident of concluding a deal.
A transfer for the £45m-rated Ligue 1 star in nearing completion.
Arsene Wenger, meanwhile, is preparing to lose Manchester United and Manchester City target Sanchez this month.
Jose Mourinho is looking to hijack City’s interest by moving for the 29-year-old.
“Sanchez could end up at Old Trafford”
United could win the race to sign Sanchez in the final days of the January transfer window if City refuse to be held to ransom by Arsenal, according to journalist Mark Ogden.
“I guess if by the last two or three days of the window City aren’t budging and United are prepared to pay the money and also maybe offer Arsenal a player in exchange, then Sanchez could end up at Old Trafford,” Ogden said.
“United do need a player of his calibre, he would be eligible to play in the Champions League because he’s only played Europe League this season.
“I can see City standing to their guns and not paying over the odds, but if it boils down to the last day of the window to £6-7m between them signing him and him going to Man United, I wouldn’t be surprised if City make a late effort to say ‘look, we’ll pay a bit more, don’t go to Man United, come here’.
“City are ready to pull the plug but I still think come the 31st of January there is a good chance he will be here (at City).”
Arsenal have been warned not to pursue Leicester playmaker Riyad Mahrez this month by former striker Charlie Nicholas.
The Scot claims Arsenal can do better than the 2016 PFA Player of the Year.
“I don’t see it. They were in (for him) over a season ago,” Nicholas said on Sky Sports’ Soccer Saturday.
“The way he’s playing right now, I have said to you before maybe a month or so ago, I’m not particularly as an Arsenal guy seeking Mahrez to come.
“Yes, I get his talent, he’s playing outstandingly well. But I think there’s better players on the market you can go and get.”