Top transfer rumours: Arsenal set to sign Carvalho and Costa, Liverpool get new right back

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Arsenal have emerged as the lead contenders to sign Sporting Lisbon's William Carvalho after their talks with Real Madrid's Sami Khedira fell through (Daily Star)

Another potential target for Arsenal is Shakhtar Donetsk's Douglas Costa after the Brazilian refused to travel back to the Ukraine amid political unrest. Spurs are also interested in the attacking midfielder (Independent)

Liverpool are set to beat the Gunners to the loan signing of Atletico Madrid right back Javier Manquillo (Sun)

Brendan Rodgers' has also all but completed the signings of Loic Remy and Divock Origi, but the Belgian will be loaned back to Lille for a season (Express)

Southampton are set to launch a second bid for Celtic and England goalkeeper Fraser Forster (Echo)