Arsenal are ramping up their transfer activity as the end of the summer window looks large.

The Gunners are understood to have held secret talks regarding the signing of Perdo Neto.

The North Londoners are trying to negotiate a deal for Wolves winger Neto - but will not be held to ransom for the Portuguese international.

Arsenal value the Wolves man at £35m while the Molineux outfit are demanding a fee of £50m.

Manager Mikel Arteta has been looking to replace Nicolas Pepe all summer and has identified Neto as a potential signing.

Youri Tielemans is understood to remain the club's top transfer priority as they look to bring in a central midfielder, but the Foxes want to keep the Belgian international - whose representatives are not averse to letting the final 12 months on his contract run down. 

However, Lyon's Lucas Paqueta is also on Edu's wishlist and could come into the Gunners' thinking if they fail to land Tielemans before the window slams shut. 

IN: Marquinhos, Fabio Vieira, Matt Turner, Jesus, Oleksandr Zinchencko 

OUT: Alexandre Lacazette (released), Nuno Tavares (loan to Marseille)