Joelson Fernandes is reportedly set to sign a new deal with Sporting Lisbon in news which will come as a blow to Arsenal.
The Gunners have been heavily linked with the Portuguese forward, who burst onto the scene this year by making four Sporting appearances at the tender age of 17.
Joelson's emergence has given rise to comparisons with Cristiano Ronaldo, who also emerged from Sporting's academy, and seen him linked with moves to Europe's giant clubs.
Arsenal were believed to be in pole position to land the Portgual U17 star, with manager Mikel Arteta prepared to meet his £40million release clause.
But A Bola report that Joelson is prepared to renew his contract at Estadio Jose Alvalade.
The Portuguese outlet adds an agreement has been reached between all parties and the new contract will add three more years to Joelson's current deal, which is due to expire in 2022.
Significantly, the release clause included in the new terms will be increased from €45million to €60million (£54million).
Which attacker should the Gunners target after missing out on Joelson? Have your say here.
While negotiations over a new deal were happening, multiple offers for Joelson were received and rejected, including offers from Arsenal.
A Bola reported earlier this month the Gunners had no joy with a bid €20million (£18million), while Borussia Dortmund also tabled the same amount.
Juventus were also monitoring the situation but Arsenal's strong relationship with agent Kia Joorabchian was understood to have given them the advantage in the race for Joelson's signature.
Elsewhere, Arteta has already added to his forward options with the signing of veteran winger Willian on a free transfer from Chelsea.
The Gunners are also primed to land highly-rated centre-back Gabriel Magalhaes from Lille and the Brazilian is reportedly undergoing a medical on Thursday.
Arteta is also targeting reinforcements in central midfield, while striker Alexandre Lacazette is linked with an Emirates exit amid interest from Juventus.
Sign up to the Mirror Football email here for the latest news and transfer gossip.
