Arsenal and Newcastle set for Lucas Paqueta transfer battle as PSG 'pull out of running for Lyon star'

ARSENAL are reportedly set to for a transfer tussle for Lucas Paqueta after Paris Saint-Germain's interest in the Lyon star has waned.

The Gunners are eyeing a summer swoop for the Brazilian dynamo to replace Granit Xhaka if he's swayed by a move to Roma.

The Magpies are also keen on the versatile 25-year-old who can play as a central midfielder, No10, centre-forward – or even on the wing.

But PSG also recently provided Paqueta with another option when they declared their interest in the ex-AC Milan star.

However, both Premier League sides can breathe a huge sigh of relief as the ChronicleLive claim the Ligue 1 giants are no longer pursuing Paqueta.

It could be because the uber-wealthy French side are focused on recruiting Paul Pogba from Manchester United on a free transfer this summer.

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In any case, the Gunners will now only have to contend with Prem rivals Newcastle in the hunt to snag Paqueta from Lyon.

The Gunner may have the edge in the transfer race as Paqueta previously rejected a contract offer of £180,000 per week from the Magpies.

It's thought that Paqueta's content with life at Lyon and will only consider a move to a bigger club.

However, Paqueta could be swayed by a move to Tyneside by his former Lyon team-mate Bruno Guimaraes who rejected a move to Arsenal in favour of a move up North.

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Guimaraes revealed he opted to join the Toon revolution because he reckons they can win the Champions League one day, and he may be able to convince Paqueta to agree.

Although if the Gunners clinch a top-four spot this season, the immediate allure of Champions League football could prove difficult for Paqueta to resist.

The Magpies' economic might may also be a key factor in the race for Paqueta as the report also states that Lyon want £58million for their star midfielder.

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