The Sunday Mirror reports that Arsenal have moved ahead of Chelsea and Wolfsburg in the race to sign the Brazilian international.
The 26-year-old is expected to complete a move to Arsenal before next week’s Premier League opener against Aston Villa.
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Liverpool have unveiled their new home kit for next season, sticking with the hugely popular retro styling of the current shirt.
The reputation of the Premier League means it is the most popular and one of the most watched leagues in the world.