By London correspondent Tony Hughes

Arsenal are interested in signing Shkodran Mustafi but face competition from Chelsea, according to a reliable journalist.

BBC Sport correspondent David Ornstein says that the Gunners have yet to lodge a bid for the Valencia defender but are keen to win the race for the player.

Ornstein claimed on his personal Twitter account that Chelsea manager Antonio Conte is also keen on signing the 24-year-old centre-back amid interest from other clubs.

Arsenal have been in the market for a new centre-back after a number of injuries forced manager Arsene Wenger to look for defensive cover.

Mustafi has been a prime target for the Frenchman and reports have claimed this week that Arsenal are preparing a new bid for the World Cup winning defender.

The Sun claimed on Thursday night that Wenger had given the green light to the club holding fresh talks with Valencia director Jesus Garcia Pitarch and that all parties were hopeful of an imminent agreement.

Arsenal fans’ hopes that their club could sign a proven winger were dashed by Ornstein.

He claims that Arsenal have given up on pursuing Leicester winger Riyad Mahrez and Wolfsburg attacking midfielder Julian Draxler.

Eurosport reported last week that Mahrez was close to following N’Golo Kante out of the Leicester exit door and joining Arsenal in a £42million deal.

Sky Sports News chief reporter Kaveh Sokhekol also revealed on his personal Twitter account on Wednesday morning that Draxler wants to join Arsenal and gave an explosive Bild interview to accelerate a transfer to London. 

However, the Gunners are reportedly still in the market for a striker having this summer already missed out on Mahrez’s club colleague Jamie Vardy.

Wenger still has just under a month to complete his summer business before the transfer window slams shut.

In other Arsenal transfer news, the club’s transfer target posts a hint on his Instagram account.