The Gunners have held a long term interest in Spain Under-21 striker Morata, and scouts have also been impressed with the performances of 22-year-old Brazilian midfielder Casermiro.
Casermiro joined Real Madrid from Brazilian club Sao Paolo for £5million, and has impressed despite limited appearances under Carlo Ancelotti.
Arsene Wenger is keen to bring the talented midfielder in either on a loan deal or on a permanent basis, but Italian giants Inter Milan are set to rival them for his signature.
The San Siro club have recently been taken over by Indonesian businessman Erick Thohir, and are likely to undergo a major rebuilding project in the summer, which they hope will include an influx of top young talent.
Arsenal are also set to move for forward Alvaro Morata this summer, after missing out on the Spaniard’s signature in the previous January transfer window.
The Gunners were keen to sign the 21-year-old on loan, but after limited opportunities at the Bernabeu this season, Carlo Ancelotti may be willing to sell for a fee in the region of £12million.
For your chance to WIN the new England kit made by Nike, simply comment below with your size...
SIGN IN WITH
TELL US YOUR SIZE BELOW
Don't have a Facebook account? See our T&C's for alternative entry.
You must complete Step 1 and 2 first!