Arsenal believe that they have lost out to Manchester United in the race to sign Southampton midfielder Morgan Schneiderlin, according to reports.
The Gunners are one of several clubs linked with a move for the Frenchman, who reportedly has an agreement to leave the club this summer.
Arsenal were thought to be heading the chase for his signature earlier in this window, but The Guardian claims that they expect United to match any bid they make for the player, and will offer him higher wages.
Schneiderlin almost left the South Coast club last summer, but they rejected offers from Tottenham Hotspur.
The 25-year-old has been with the Saints since 2008.
