Transfer news: Arsenal face fresh competition for signature of Gonzalo Higuain

Napoli reveal they are interested in signing the Real Madrid striker

Arsenal's hopes of signing Gonzalo Higuain have been dealt a fresh blow after Napoli revealed they are also interested in signing the Real Madrid striker.

Having sold Edinson Cavani to PSG for £54m yesterday, the Serie A side have become a powerful player in the transfer market with money to spend and a need for a new striker.

Outspoken president Aurelio De Laurentiis was taking part in a Twitter chat when a fan asked him if Napoli were negotiating deals for Higuain and Brazilian Leandro Damiao. He replied: "It's true that we're negotiating for Gonzalo Higuain and Leandro Damiao.

"The money we got for Cavani was €64.5m and added to the €60m we had set aside for the transfer budget there will be €124.5m to carefully invest on Napoli.

"There are various names on the table, we're assessing the situation.

Higuain had at one stage appeared on the verge of a move to the Emirates with his father and agent claiming the deal was at a "very advanced" stage.

However, since then, Real Madrid have claimed they are yet to even receive a bid from Arsenal and their stance on selling the striker has changed. New boss Carlo Ancelotti is understood to be keen to keep the Argentina international at the Bernabeu.