Arsenal have been beaten to the signing of Pape Gueye by fellow Premier League side Watford.
The Le Havre midfielder was on a list of targets that the Gunners were set to pursue this summer.
But the Hornets have won the race for the 21-year-old who was out of contract in the summer.
Watford have signed a pre-contract agreement with Gueye and he will officially head to Vicarage Road on July 1 on a five-year deal.
That is despite the club not being able to give assurances on their top flight status as they battle relegation.
It will no doubt serve as a frustration to Arsenal that a side who could be playing in the Championship next term beat them to the Frenchman.
Le Havre were sixth in Ligue 2 but had their season ended on Tuesday when the French Prime Minister declared there would be no sport until September.
Gueye has represented his country at both U18 and U19 level after signing his first professional deal in 2017.
It means the Gunners will have to look elsewhere for midfield recruits with Valencia's Carlos Soler another name on their shortlist.
Funds could be at a premium in north London though with the Gunners feeling the financial affects of the coronavirus pandemic.
The club are set to prioritise free transfers and swap deals this summer.
That could hinder Mikel Arteta's recruitment plans with the Spaniard keen to put his stamp on things.
Last summer his predecessor Unai Emery also endured similar issues with a minimal budget compared to their rivals.
It meant he had to be clever about how he struck deals with Nicolas Pepe's club-record move being paid in installments.
