Arsenal may make a £5m move for Croatia international Marcelo Brozovic, 21, after scouting the Dinamo Zagreb midfielder during their Euro 2016 qualifier against Italy.
The Gunners are also interested Sevilla's £24m-rated Poland midfielder Grzegorz Krychowiak but face competition from Inter Milan and Borussia Dortmund for the 24-year-old's signature.
Arsenal boss Arsene Wenger has no intention of letting Germany striker Lukas Podolski, 29, leave in the January transfer window.
Crystal Palace and Sunderland are tracking the progress of 24-year-old Senegal international Stephane Badji, who has a £600,000 release clause with Norwegian club SK Brann.
Bayern Munich are expecting to receive a January bid for Swiss playmaker Xherdan Shaqiri, 23, with Liverpool, Chelsea and Tottenham among those interested.
Napoli boss Rafael Benitez has ruled out a January move for Liverpool striker Mario Balotelli, 24, calling it a "hypothesis that I have never considered"
Liverpool and Arsenal face competition from Dynamo Moscow for 28-year-old Marseille striker Andre-Pierre Gignac, who is out of contract next summer.