Sporting Lisbon winger Gelson Martins will reject a move to Real Madrid, according to Don Balon.
The Portuguese international is a firm favourite of Madrid president Florentino Perez after he watched the 21-year-old play for Sporting against Real in the Champions League.
Martins is however concerned he would not get the game time he would need to develop as a young player at the Santiago Bernabeu.
Portuguese newspaper Abola reported that Arsenal scouted Gelson in the 1-0 win against Boavista in the Portuguese league at the weekend, and it seems the Gunners would have the upper hand.
Don Balon say Gelson would prefer to stay at Sporting to aid his future development as a player, or move to another club where he could still play regularly.
Abola report that this gives Arsenal the advantage. The newspaper also states that Gelson and Sporting are locked in negotiations over a new deal. The player is demanding €1m-a-season but currently his club is only offering €800,000.