Arsenal in talks with £50m striker as Newcastle United agree £20m deal ahead of Carabao Cup tie

It’s advantage Newcastle, with Eddie Howe’s side leading 2-0 from their first-leg win at the Emirates. However, there is an air of nervousness in the Geordie fanbase after watching their team lose back-to-back home matches against AFC Bournemouth and Fulham.

The Gunners, meanwhile, are growing in confidence after thrashing Premier League champions Manchester City 5-1 on Sunday evening. The aim now is to build on their good feeling by bolstering their attack in the remaining hours of the January transfer window.

Mikel Arteta’s side had a bid rejected by Aston Villa for Ollie Watkins last week, while they have also been linked with Juventus striker Dusan Vlahovic. But the latest player Arsenal are exploring is Bayern Munich forward Mathys Tel.

Tel looked set to join Tottenham Hotspur last week after agreeing a £50m deal, however the 19-year-old turned down the move after holding face-to-face talks with chairman Daniel Levy.

Manchester United then came forward with a loan offer, but Bayern rejected. Talks have since broken down, paving the way for Arsenal to strike an agreement. However, as it stands, Tel will be staying in Germany with Bayern demanding either a permanent transfer or a loan with an obligation to buy.

Newcastle United transfer latest

Newcastle’s squad will be a body lighter when they host Arsenal at St James’ Park on Wednesday.

Lloyd Kelly flew to Turin on Sunday and is putting the finishing touches to his loan move to Juventus, which includes a £20million obligation to buy in the summer.

The 26-year-old came on as a late substitute in the 2-1 defeat to Fulham on Saturday but has made just four Premier League starts since arriving on a free transfer from AFC Bournemouth last summer.

He is set to follow Miguel Almiron out of the exit door after the Paraguayan re-joined Atlanta United for £10m last Thursday.