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Arsenal transfer latest: Werder Bremen have 'agreement in place' for permanent signing of Gunners starlet Serge Gnabry, says club director

Werder Bremen are on the verge of completing a permanent deal for Arsenal starlet Serge Gnabry, according to the Bundesliga club's director of sport Frank Baumann.

The 21-year-old German forward, who scored six goals for his country as they clinched a silver medal at the Olympic Games, is out of contract next summer and set to return to Germany.

Reports on Wednesday had claimed German champions Bayern Munich were set to land the Gunners youngster and immediately loan him to Bremen.

But Baumann dismissed those rumours and said he expects Gnabry to arrive in northern Germany on Wednesday before putting pen to paper.