Arsenal news: Reiss Nelson set to sign new deal as Gunners suffer Declan Rice blow

After falling short to Manchester City in their Premier League title bid this season, Arsenal are looking to strengthen their squad this summer under manager Mikel Arteta

Arsenal now know they will take on Manchester City in next season's curtain raiser, but their squad could look very different.

The Gunners ended an impressive campaign with a 5-0 victory over Wolves last week to finish their season on a high note, despite a difficult few weeks. Nevertheless the north Londoners have surpassed all expectations and Mikel Arteta will want to build on their efforts.

Arsenal will return to the Champions League after several years away and their young squad will need more depth and quality added, especially with several players set to depart. Declan Rice is thought to be a prime target whilst James Maddison has also been linked.

Bukayo Saka recently penned a new deal and those at the Emirates are now hoping that William Saliba will follow suit and pen a new deal with discussions ongoing. Here's the latest news from the red half of north London.

Academy graduate Reiss Nelson is now expected to remain at the Emirates, with the Daily Mail reporting that a breakthrough has been made in talks over a contract extension.

Nelson's current deal is due to expire this summer and, having already rejected several offers of an extension, appeared to be on his way out. However, it is claimed that Nelson has now agreed terms in principle on a new long-term contract.

The report states the winger is set to put pen to paper on a four-year extension which would offer him a significant pay rise on his current £60,000-a-week deal. Nelson made a total of 18 appearances in all competitions for Arsenal this season, scoring three goals.

Arteta is desperate to strengthen his midfield this summer and Rice is one of his top targets, with the West Ham star keen to play Champions League football.

Arsenal can offer Rice that next season, but they are not the only club interested in his services. The Times report that Newcastle have also shown interest in the England international, while the likes of Manchester United and Bayern Munich have also been linked.

The report also states that Rice would prefer a move to Arsenal over Newcastle, but the Gunners are not willing to pay West Ham's asking price. The Hammers are said to be demanding around £100m for Rice, including add-ons.

Arsenal have also been heavily linked with Brighton midfielder Moises Caicedo, who they attempted to sign back in January.

Despite a public plea from Caicedo for Brighton to let him join Arsenal, he stayed put and ended up signing a new deal. However, manager Roberto De Zerbi has admitted he expects Caicedo to leave this summer, with Arsenal, Chelsea and Liverpool all interested.

And according to the Guardian, Chelsea could hold an advantage over Arsenal and Liverpool with Brighton hoping Blues defender Levi Colwill will return to the Amex after an impressive loan spell.

Can Arsenal challenge for the title? Get your latest Gunners news with our FREE daily email newsletter