By Arsenal correspondent Tony Hughes

William Carvalho will now cost Arsenal £35.1million in the summer after the midfielder signed a new Sporting Lisbon contract, the club announced on Tuesday night.

The Portuguese star has signed an extension that ties him to the club until 2020 and includes a higher release clause.

The clause on Carvalho’s old deal was set at £29million but it has been increased to £35.1million to put off potential suitors.

As revealed by Football Insider, Carvalho was on Arsenal’s January target list after the Gunners scouted him before Christmas but the cost of the deal put off Arsene Wenger.

But Arsenal will be back in the market for a central midfielder in the summer, when the contracts of veteran pair Mathieu Flamini and Mikel Arteta are due to expire.

Carvalho, 23, has been on Arsenal’s radar in recent years, with the Londoners coming within a whisker of signing him on the final day of the summer 2014 transfer window.

A shin injury ruled Carvalho out last summer but he is fully recovered and has been playing regularly for Sporting since returning to action in late September.

A statement on Sporting’s website read: “The Board of Directors of Sporting Clube de Portugal announces that the athlete William Carvalho Silva extended his contract with Sporting Clube de Portugal until the season 2019/2020, settling the termination clause in €45,000,000.00 (forty- five million euros).”