Transfer talk: Arsenal lead race for Xherdan Shaqiri, Spurs fears over Morgan Schneiderlin, Radamel Falcao's Manchester United future

Transfer talk: A look at the latest news, gossip and rumours on Saturday 20 December

Xherdan Shaqiri, Morgan Schneiderlin, Andros Townsend and Stephan El Shaawary (Getty Images)

Bayern Munich are prepared to let Swiss winger Xherdan Shaqiri leave in the January transfer window according to the Metro, with Arsenal believed to be leading the race for the 23-year-old.

Shaqiri has fallen out of favour at the Allianz Arena with Arjen Robben and Franck Ribery preferred on the flanks, and the undefeated Bundesliga are reported to be looking for around £18m in order to him go. However, the Gunners are said to be hopeful of landing him for a fee closer to £10m and will allow Lukas Podolski and Joel Campbell to leave the club in order to finance the move.

Arsenal’s north London Tottenham are said to fear that their proposed move for Morgan Schneiderlin could be hijacked by the Gunners. The Telegraph reports that Spurs manager Mauricio Pochettino is determined to bring in a central midfielder in January with current first-team regular Nabil Bentaleb set to join up with Algeria for the African Cup of Nations.

However, Arsenal’s need for a holding midfielder is clear to see and with both Jack Wilshere and Aaron Ramsey currently injured, any hint from Saints that Schneiderlin can leave in January could see Arsene Wenger move for the Frenchman. The Gunners have a positive relationship with the south coast club given their transfer history in the past that has seen Theo Walcott, Alex Oxlade-Chamberlain and Calum Chamberlain all make the move to the Emirates.

Meanwhile further north, Louis van Gaal has told Radamel Falcao that he needs to improve his fitness if he is to convince him to keep the striker at Manchester United. Falcao has struggled to feature regularly in the first team this season due to injury and fitness concerns, and Van Gaal says he needs to first prove his fitness and then perform well when given the chance if he is to activate the £43.5m clause in his loan deal to make the move permanent.

Manchester United striker Radamel Falcao (Getty Images)

AC Milan forward Stephan El Shaarawy has again been linked with a move away from the Italian club, but his agent has confirmed that it would take a “sensational offer” from reported suitors Arsenal or Liverpool if he is to leave any time soon.

The Daily Express claims that the relationship between El Shaarawy and Milan is currently “excellent” and that any bid would have to be worth it to the European giants. Both Roma and Borussia Dortmund also believed to be interested.

AC Milan forward Stephan El Shaarawy

Queens Park Rangers are hopeful of signing Tottenham’s Andros Townsend on loan until the end of the season. The Evening Standard reports that the 23-year-old, who spent time with the Loftus Road outfit in 2012-13, has been identified as one of their top targets in the January window. QPR are also willing to give Ravel Morrison a last chance should he want to move to the club, with The Sun reporting that Harry Redknapp has admitted his interest despite the midfielder having his loan deal with Cardiff cancelled earlier this week.

Aston Villa manager Paul Lambert has dismissed any chance of captain Ron Vlaar and midfielder Fabian Delph leaving in January despite reported interest from Manchester United, Arsenal and Liverpool.

The Daily Mirror claims that both United and Arsenal want 29-year-old Vlaar to strengthen their defences despite his concerning injury problems with a troublesome calf this season, while Liverpool are reported to be monitoring former Leeds player Delph.

Finally, Arsenal striker Yaya Sanogo could be on his way to another Premier League club for the remainder of the season after a number of teams identified the out-of-favour Frenchman as a possible solution to their relegation survival attempts. According to TalkSport, Aston Villa, Crystal Palace and Sunderland are all in the hunt for the 21-year-old.