Joao Felix’s agent Jorge Mendes is reportedly scheduled to hold talks with Arsenal on Sunday regarding a loan switch to the Emirates.
The 23-year-old has been given the green light to depart the Wanda Metropolitano in January having fallen out of favour under Diego Simeone.
Felix was even left out of Atletico’s squad for their recent Copa del Rey clash against Real Oviedo as speculation over his future rumbles on.
The Portugal international was the subject of an enquiry from the Gunners in December as Mikel Arteta weighs up bringing in temporary cover for Gabriel Jesus following his knee injury.
And according to the Mirror, the north London outfit are set to step up their pursuit of the ex-Benfica forward.
It has been said that Arsenal have planned to hold negotiations with Felix’s representative Mendes about whether they will turn their interest into a formal offer.
The news outlet has stated that Arteta remains a keen admirer of Felix having failed to secure his services last summer.
But in a potential blow for Arsenal, Premier League rivals Manchester United are understood to have first refusal on the player.
United are reported to have already had a £3million loan offer knocked back by the LaLiga giants.
The Mirror has suggested that Atletico are holding out for a whopping £9.5m loan fee.
And they are also demanding potential suitors agree to an obligation to sign him permanently for £70.5m in the summer.
Felix has established himself as one of Europe’s most exciting players since joining Atletico in 2019, where he has scored 34 goals in 130 games.
But just five of those strikes have come this season, with the player finding himself in and out of the team.
United have identified Felix as a possible option to replace Cristiano Ronaldo after he had his contract terminated by mutual consent in November
Burnley striker Wout Weghorst – on loan at Besiktas – has also emerged as a target for United, with the striker keen to make the move to Old Trafford.