Monaco has offered Radamel Falcao to Manchester City and Arsenal at a cost of £55 million.
Arsenal has a need at striker, particularly with Olivier Giroud out until December.
City would need to offset the acquisition of Falcao by selling one or more of their players to comply with Financial Fair Play.
City would need more than to double the money available to them and would be willing to move on Álvaro Negredo, Micah Richards, Matija Nastasic and Scott Sinclair to close the gap.
City could potentially agree upon a loan deal with the option of buying him in January or next summer.
Falcao’s camp have been pushing to get him to Real Madrid but have encountered unexpected resistance from the decision-makers at the Bernabéu.