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Arsenal blow as goalkeeper Kepa Arrizabalaga is set to sign new contract and stay with Athletic Bilbao

Arsenal have been dealt a blow in their pursuit of Athletic Bilbao goalkeeper Kepa Arrizabalaga.

The highly-rated 23-year-old is a target for both the Gunners and Spanish giants Real Madrid, with his contract at San Mames set to expire at the end of the current season.

But there has been a breakthrough in discussions and he is now expected to sign fresh terms, according to Talksport.

Athletic Bilbao goalkeeper Kepa Arrizabalaga is set to sign a new contract with the club
Athletic Bilbao goalkeeper Kepa Arrizabalaga is set to sign a new contract with the club

Arrizabalaga, who is considered to be similar in style to Manchester United stopper David De Gea, had been demanding a significant wage increase.