Transfer news LIVE: Arsenal 'closing in' on third signing as Chelsea reach £33m agreement

Al Ittihad have reportedly cooled their interest in Manchester City playmaker Kevin De Bruyne.

According to Rudy Galetti, Al Ittihad have decided to ‘withdraw’ from the race to sign the ex-Wolfsburg star. The Saudi outfit believe that City’s price tag for the 33-year-old is ‘too high’ as they were hopeful of striking a cut-price deal to acquire his services.

De Bruyne is in the final year of his contract at the Etihad Stadium, which sparked belief in Saudi that he would be available for a reasonable fee.

However, City are not keen to part ways with their No. 17 and opted not to reduce their asking price for their skipper despite his contractual situation, prompting Al-Ittihad to review their pursuit and decide to strengthen in other departments.

Brighton have confirmed the departure of Pascal Gross, who has joined Borussia Dortmund on a two-year deal.

The Germany international was granted his move after it became clear that he wanted to join his boyhood side and compete in the Champions League next season.

Gross joined the Seagulls in 2017 for £3million and went on to make 228 appearances for the club, playing a pivotal role in their progress from being relegation-contenders to competing in the Europa League.

West Ham United are reportedly close to agreeing a deal with Manchester United to acquire the services of Aaron Wan-Bissaka.

According to The Sun, the Hammers are hopeful they can secure a £10m swoop for the United right-back after it became clear that he does not feature in Erik ten Hag’s long-term plans.

However, Wan-Bissaka’s wage demands could prove problematic to completing a deal and talks are ongoing to attempt to resolve the situation.

Atletico Madrid have reached an ‘agreement in principle’ with Chelsea for Conor Gallagher, reports talkSPORT.

The La Liga outfit have struck a deal worth £33million plus add-ons for the midfielder.

Gallagher is yet to agree on personal terms with Atletico but is said to be interested by the project and working under Diego Simeone.

Chelsea had previously quoted £50m to their academy product’s suitors after he rejected a fresh three-year contract at Stamford Bridge – a proposal which he is said to have snubbed for the second time earlier this week.

Tottenham continue to monitor the situation of the midfielder though it remains to be seen whether they attempt to hijack the deal.

Arsenal are reportedly ‘closing in’ on the signing of Real Sociedad star Mikel Merino.

According to Fabrizio Romano, a deal ‘in excess’ of £25million is being discussed and talks are ongoing in the hope of striking an agreement.

Merino has already agreed on personal terms with the Gunners as the midfielder is keen to join the Emirates Stadium outfit ahead of next season.

Mikel Arteta has already bolstered his ranks with the signings of Riccardo Calafiori and David Raya.