Exequiel Palacios confirms that Arsenal is interested in the summer transfer

River Plate midfielder Exequiel Palacios has confirmed that Arsenal would be interested in signing this summer.

The 20-year-old athlete has been followed by Arsenal and Real Madrid over the past year and is considered one of South America's top prospects.

Real signed a £ 20 million contract with River Plate for Palacios last summer, before his injury ended his decision and Arsenal became the new favorite.

Asked about his future this week, Palacios revealed that Arsenal was one of his contenders: "I'm proud that clubs like Real Madrid and Arsenal are interested in me."

Although Real has accepted a £ 20m fee last year, the Palacios release clause is £ 18m.

Unai Emery is planning a great summer, but will have to spend within the limits of his means due to a limited transfer budget.

The Spaniard would have a transfer of funds of only 45 million pounds and should unload some players from the first team to raise additional funds.

Arsenal is ready to listen to the offers of Mesut Ozil and Shkodran Mustafi, while Emery is aiming for a redesign of his team.

But Arsenal's efforts to attract top players to the UAE would be hampered by their inability to qualify for the Champions League.

A humiliating 4-1 defeat by Chelsea has put an end to Arsenal's hopes of securing football in the Champions League next season.