Arsenal have agreed on a deal in principle with Barcelona star Alexis Sanchez, Telegraph reports.

Although Barcelona are keen to use Sanchez in a part-exchange deal to bring over Luis Suarez, the Chilean international is determined to join the Gunners.

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It could very well be that Sanchez is looking to up his value by putting the Premier League duo in a bidding war, however reports suggest he is favouring a move to London.

Arsenal had an initial £22million offer rejected by the Catalan club, and will likely have to go beyond £25million for Barcelona to consider.

Arsene Wenger does have a suspected transfer kitty of £100million this summer, which would allow for such an expensive move.

If the Gunners do have a bid accepted, not only will Sanchez be departing the Nou Camp but it would open the door for much smoother talks regarding Suarez’s move to Barcelona.

The Reds are holding out for an £80million fee if the Sanchez isn’t part of the offer, which Barcelona will pay in a straight cash deal.

Meanwhile Liverpool have confirmed the £10million signing of Emre Can from Bayer Leverkusen.