Arsenal could close a deal to sign Real Madrid playmaker Martin Odegaard for €40million this month, according to reports.

The Gunners were handed a massive boost in their pursuit of the attacking midfielder after it was revealed that Carlo Ancelotti had not registered him in Madrid’s LaLiga squad for their first league match of the season, nor has he been given a shirt number.

Odegaard has been on the fringes during pre-season and being left out of Real’s squad has further compounded his fears of being unwanted at the club.

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The 22-year-old is unlikely to break into the starting 11 with Luka Modric, Toni Kroos and Casemiro playing together for another season.

Federico Valverde, Isco and Dani Ceballos also appear to be ahead of the Norwegian in Ancelotti’s pecking order.

He spent the second half of last season on loan at Arsenal where he impressed in spells. Mikel Arteta’s men struggled for creativity last term and Odegaard certainly helped improve that aspect of the team.

The north Londoners have been monitoring his situation all summer after he returned to Spain, and could now make their move with his future at the 13-time European champions looking bleak.

According to El Confidencial in Spain, Real Madrid value Odegaard at €50m, but also say the ‘transfer could be closed’ for €40m.

Fabrizio Romano has said on Twitter that Arsenal are preparing a bid for the Norway captain:

“Arsenal are prepared to make a bid to sign Martin Ødegaard on a permanent deal. He’s always been Edu and Arteta’s priority as number 10.

“Once Real Madrid gives the green light, Arsenal will submit the proposal.”

Romano also claims that Leicester City star James Maddison has never been close to joining the Gunners.

However, he does state that Lyon midfielder Houssem Aouar is on Arsenal’s shopping list.

Talks between the Premier League club and Aouar reportedly broke down last month, but the Gunners are still interested in signing the Frenchman, according to ESPN.

Earlier this month, The Sun revealed that Aouar still wants a move to north London and his representatives were surprised by Arsenal’s efforts to sign Maddison.

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