Real Madrid striker Mariano Diaz has been offered to Arsenal.
The Mirror says the Gunners have a transfer budget of just 40m following the failure to qualify for the Champions League.
That has dented Arsenal's hopes of landing Wilfried Zaha (Crystal Palace) while they also look set to miss out on Ryan Fraser (Bournemouth) and Yannick Carrasco (Dalian Yifang).
But Diaz is surplus to requirements at Real Madrid and Arsenal have been sounded out about taking him for a cut-price 18m.
The Gunners are down a forward since allowing Danny Welbeck to leave the club.
