Real Sociedadvs.Rayo Vallecano

Merino had an excellent 2023-24 season, during which he scored five goals and provided three assists in 32 La Liga appearances for La Real.

The 28-year-old was also a standout performer for Spain at Euro 2024, where he scored the winner to knock host nation Germany out of the competition in the quarter-final.

The Gunners have been linked with a move for the 28-year-old midfielder for several weeks and made their interest official with an opening offer earlier this week.

Sporting director Edu is believed to be in Spain at present, trying to work with the Basque club's hierarchy on a deal for the Spanish international.

Arsenal preparing new offer for Merino

According to the Daily Mail, Arsenal are ready to increase their offer to around £30m for the midfielder, who is now in the final 12 months of his current deal with Real Sociedad.

The report adds that the La Liga outfit turned down the Gunners opening bid as it did not meet their £34m valuation of the player.

However, it is understood that negotiations between the clubs are still ongoing and Sociedad may be willing to consider an offer of around £29.9m (€35m).

Merino is believed to be eager to return to the Premier League to work under Mikel Arteta and has already agreed on personal terms with the club.

The 28-year-old was on the books of Newcastle United before La Real snapped him up for around £10m at the start of the 2018-19 season.

Arsenal handed major transfer boost in Merino pursuit?

With negotiations between the clubs believed to progressing well, widespread rumours suggest that the Gunners are on the verge of reaching an agreement for Merino after Real Sociedad left the midfielder out of the squad for their opening league fixture.

Speaking to reporters ahead of their season opener, La Real boss Imanol Alguacil confirmed that Merino's omission from the matchday squad was due to the uncertainty around his future.

Alguacil said: "We worked with the idea that we would count on him, but I decided to leave him out of the squad," Alguacil told reporters in Spain.

"He told me that he was ready to help. He wanted to be on the pitch. We are the ones who are here.

"There are open talks with other clubs and this decision is the best for them, for the club and for me.

"I don't know if I'm optimistic about him. I know more or less what he wants, but we don't know how those talks will end. At the moment, he's with us. Tomorrow he'll be out of the game."

If Arsenal are able to secure the Spaniard's signature, it would be their third piece of business this summer after making David Raya's deal permanent and signing Riccardo Calafiori from Bologna.