Tottenham have cleared the way for Arsenal to pursue a deal for Brazilian winger Malcom as Mauricio Pochettino’s men drop their interest.
The Daily Mail reports that Spurs will look elsewhere, despite being keen to sign the youngster in the past.
Arsenal have been heavily linked with the player who has been earning rave reviews in Ligue 1 this season.
Spurs and Arsenal have both been touted as possible destinations for the player who only joined Bordeaux in the summer, while Manchester United have also expressed an interest.
The player, who has scored seven goals in Ligue 1 this season, is currently valued at close to £45 million.
Arsenal are in the market for a wide player with the future of Alexis Sanchez remaining unclear.
Manchester City are thought to be leading the race to sign him, but rivals Manchester United have also expressed an interest over a possible January deal.