By Harvey Byrne

Arsenal midfielder Serge Gnabry is a target for Hertha Berlin, according to a report.

German publication Sport Bild claims that the German capital club are keeping close tabs on the 21-year-old and have shortlisted him as a transfer target.

The Arsenal starlet’s contract runs out at the end of this season and it is believed that he would cost around £1.7million this summer if his current deal is not extended.

It is claimed in the report that Gnabry has opened talks with Arsenal over a contract to replace his current deal, which expires in June 2017.

However, Hertha are open to agreeing a loan move for the wide player this season.

The Stuttgart-born wide man has caught the eye with his performances at the Olympic Games in Rio, netting once against Mexico in a 2-2 draw, before hitting a brace against South Korea in a 3-3 thriller.

The youngster had a disappointing loan at Premier League rivals West Bromwich Albion last season, where he was recalled after making just three appearances for Tony Pulis’ side in all competitions.

The seven-time capped Germany Under-21 international was highly rated when he broke into the Gunners first-team after he made his professional debut in the 2012-13 season against Coventry in the League Cup.

However, the German youngster hasn’t appeared for the north London club since March 2014 and it is unclear what his role will be at the club.

In other Arsenal transfer news, the Gunners are preparing to lodge a £30million bid for Manchester City striker Wilfred Bony.