Arsenal look set to increase bid for playmaker Arshavin to £12m

By Rob Draper, Mail on Sunday Chief Football Writer

Updated: 15:31 EST, 10 January 2009

Arsenal are poised to increase their bid for Andrei Arshavin to £12million after Zenit St Petersburg rejected their initial £10m offer.

Russian Arshavin was in London last week to prepare for the move and, with boss Arsene Wenger identifying him as a key target and Zenit keen to sell, a deal could be completed this week.

Wenger wants to add Arshavin to his squad to show that he can compete with Manchester United, Chelsea and Liverpool.

On the move: Andrei Arshavin of Zenit St Petersburg

But he has been told by Arsenal chairman Peter Hill-Wood that the club must divert funds into the redevelopment of Highbury, which has been hit by the property slump. With the collapse of sterling in recent months, Arsenal's transfer funds have been squeezed tighter than they anticipated.

Arsenal have offered £10m plus an additional £5m based on appearances for Arshavin, but Zenit do not want to settle for less than £18m and want a higher percentage paid up front.

Zenit spokesman Alexei Petrov said: 'I can confirm that Zenit did get an official offer from Arsenal about Andrei Arshavin. It was rejected as insufficient. 'They offered about £10m. No new offers have arrived from them since. At the moment, Arsenal are the only club to have approached us about the player.'

Wenger will have to persuade director Danny Fiszman and Hill-Wood to release more funds for the player and potentially break the club's transfer record - £13m paid for Sylvain Wiltord more than eight years ago.

Arshavin's signing may also go some way to convincing captain Cesc Fabregas that the club has the potential to attract big names, with talks on his future due this summer.

Fabregas is the player Barcelona coach Pep Guardiola wants for next season and they have already tried to sign him, when director Marc Ingla met with Arsenal director Ken Friar last summer.

But with Barcelona enjoying their best period for two and a half years, top of La Liga and playing some of the most stylish football in Europe, it is believed at the Nou Camp that Guardiola's special relationship with Fabregas will now tempt him back to the club he was at as a youth-team player.

Arsenal now face a critical six months, with Robin van Persie yet to sign his new deal and also attracting interest from Barcelona.

And Theo Walcott's contract runs out in 2010 and will need to be upgraded in the next few months to secure his future at the club.