Arsenal have reportedly been told they will need to pay €40-50million (£33-42m) to sign red-hot Portuguese centre-forward Gustavo Varela amid rival interest from Tottenham Hotspur.

Arsenal tried to sign a new striker over the summer, as they approached Julian Alvarez after learning of his desire to leave Atletico Madrid. Gunners boss Mikel Arteta saw Alvarez as an elite potential upgrade for Viktor Gyokeres.

However, Atleti were determined to retain the Argentina ace, and they succeeded in keeping Arsenal and Barcelona at bay.

Gyokeres’ form has improved of late, as he has scored against Fleetwood Town in the League Cup and Slavia Prague in the Champions League.

But there remains speculation Gyokeres could leave the Emirates next summer as Arteta seemingly does not trust him to start Arsenal’s biggest matches.

Arsenal have been linked with in-form Monza striker Varela as a potential replacement for Gyokeres.

On October 24, Italian source Tuttomercatoweb claimed Arsenal sporting director Andrea Berta had started to ‘make moves’ for Varela by making an enquiry to Monza about his potential availability.

According to an update from Portuguese newspaper A Bola, Monza have quoted interested clubs €40-50m to sign the player, who has already hit 11 goals in just 10 appearances so far this season.

Previous reports suggested Varela might be available in January for just €20m (£17m), but Monza actually want far more than that. The 21-year-old’s excellent form has, understandably, seen his price tag skyrocket.

Arsenal, Tottenham both keen on Gustavo Varela

We revealed on November 2 that Premier League clubs including Tottenham, Chelsea and Newcastle United are showing ‘growing interest’ in Varela, having scouted him when he scored in Monza’s 2-1 Serie A defeat to Bologna the previous weekend.

Earlier this week, German source Fussball News claimed Borussia Dortmund and RB Leipzig are facing ‘fierce’ competition from English clubs including Spurs, while Arsenal and Chelsea’s interest was also described as ‘particularly strong’.

Spurs boss Roberto De Zerbi is searching for a striker to replace Richarlison and provide Dominic Solanke and Omar Marmoush with sufficient cover and competition. Varela has appeared on Spurs’ radar, teeing up a possible transfer battle with rivals Arsenal.

Monza look set to make a huge profit on the Portugal U21 international, having signed him from Benfica B for just €2.5m (£2m) in July.