ARSENAL have been dealt a major blow in their pursuit of Renato Sanches.
Sanches has been linked with a move to the Emirates recently, with Arsenal looking to bolster their midfield in preparation for a European campaign next season.
However, Serie A league leaders AC Milan have agreed to deal to buy the 24-year-old, according to Calciomercato via .
The report indicates an agreement between the two parties has been struck in the region of £17m with up to an extra £4m in adds-on.
Arsenal are set to lose Mohamed Elneny in the summer, while Granit Xhaka has also been linked with a move away to Roma.
Losing two midfielders would leave them desperately short in the engine room, a position they frantically tried to bolster in the January window.
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Milan are set to lose midfield maestro Franck Kessie to Barcelona when his contract expires in the summer.
This has therefore led the Rossoneri to be proactive in their business and strike swiftly to agree to a deal for one of Lille's key players in their title winning team from last season.
Sanches has once again been one of the primary players for Lille this season - featuring in 23 league games.
He burst onto the scene with Portugal at Euro 2016, securing a move to Bayern Munich from Benfica.
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He spent one year on loan with Swansea in the Premier League, spectacularly failing to live up to the hype set on him.
A year after Sanches was sold to Lille for £18m and jump started his stagnating career.