Arsenal have been handed a big blow in landing the signature of Real Valladolid defender Ivan Fresneda this month.
The Gunners have been hot on the trail of the young right-back but it appears they could miss out on his services to Borussia Dortmund.
Both clubs have agreed to pay €15 million to the La Liga outfit and Fresneda is now expected to make a decision regarding his next move.
The Gunners were initially deemed favourites to land him but the situation has now changed with the right-back eyeing guaranteed game time.
Fresneda is said to be reluctant to settle for a third-choice role and he could instead Dortmund, who are ready to hand him more minutes.
They are set to loan him back to the Spanish club for the season. By the next campaign, they are prepared to make a space for him in their XI.