Arsenal succumbed to a 2-1 defeat to Manchester City in the Premier League on Saturday. The Gunners took the lead through Bukayo Saka in the first half. However, the Citizens drew level through a Riyad Mahrez penalty after the break, before a late Rodri goal secured all three points for the defending champions.
Meanwhile, Arsenal have begun negotiations for a Lyon star. Elsewhere, the Gunners are locked in battle with Liverpool for a Portuguese ace.
On that note, here's a look at the key Arsenal transfer stories as on 2nd January 2022.
Arsenal begin negotiations for Bruno Guimaraes
Arsenal have begun negotiations to bring Bruno Guimaraes to the Emirates this month, according to Just Arsenal via journalist Nicolo Schira. The Gunners have plans to bolster their midfield in the winter transfer window. Manager Mikel Arteta is impressed by the Brazilian and wants to bring him to the club.
Guimaraes has earned rave reviews for his recent performances with Lyon. The Brazilian also played a key role in his country's triumph at the Tokyo Olympics. The 24-year-old has assisted five times in his 22 games played across competitions this season. He could hit an even higher level with the Gunners.
The Gunners are on the lookout for a new midfielder this month after they will lose Thomas Partey and Mohamed Elneny to the AFCON. The London side are also willing to offload Ainsley Maitland-Niles before the end of January. Granit Xhaka's future at the club is up in the air as well.
As such, the Gunners' interest in Guimaraes is justified. Arsenal want to bring in the player in January. However, it might be easier said than done, with a move in the summer looking more realistic.
The London side are aware that the player is already attracting attention from clubs around Europe. The Gunners want to skip the queue and secure his services this month. Guimaraes could be available for £38 million.
Gunners battling Liverpool for Ricardo Horta
Arsenal are locked in battle with Liverpool for Ricardo Horta, according to Fichajes. The Gunners are enticed by his recent goalscoring exploits with Braga. The Portuguese left winger has scored 12 times, and set up six more in 25 games across competitions this season.
Arsenal have targeted talented young players recently, but could make an exception for Horta. The 27-year-old would bring a wealth of experience to the Emirates. However, the London side may have to ward off competition from Liverpool to secure Horta's services.
Arsenal identify Pierre-Emerick Aubameyang's replacement
Arsenal have identified Aston Villa striker Ollie Watkins as a potential replacement for Pierre-Emerick Aubameyang, according to ESPN. The Gabon international is expected to be offloaded this year after falling out with Arteta. Aubameyang has been kept out of recent matchday squads due to a disciplinary breach.
The Gunners are already scouting the market for a replacement for Aubameyang, and have zeroed in on Watkins. The Englishman has caught the eye with his performances for Aston Villa, so Arteta wants to bring him to the Emirates. He has scored five goals and assisted once in 16 Premier League games so far this season.