Arsenal have made the signing of Wolves winger Pedro Neto a transfer priority this month, according to a new report.
The Gunners are keen on bringing the 22-year-old to the Emirates but must offload club-record signing Nicolas Pepe in order to facilitate the move.
Mikel Arteta's side are in negotiations with Ligue 1 side Nice over a potential loan deal for Pepe, which would give them the green light to seal a deal for Neto.
Arsenal have been in month-long discussions with agent Jorge Mendes over the Portugal international, according to The Athletic.