Arsenal and Barcelona have been dealt a blow in their pursuit of Racing Club striker Lautaro Martinez after news surfaced that the 20-year-old is poised to complete a £17m move to Inter Milan.

The Gunners have been tracking the young forward for some time but Inter have moved to the front of the queue to sign Martinez after spending much of the last few months working on a deal.

Martinez has caught the eye for Racing in the last 12 months, netting 11 goals in 13 games so far this season which has seen him emerge on Arsenal’s radar.

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Capped 11 times at U20 level by Argentina, scoring seven goals. Martinez is considered as one of South America’s best young prospects and is expected to follow in the footsteps of fellow Argentine standouts Carlos Tevez, Sergio Aguero and Paulo Dybala by excelling in Europe.

It’s reported that despite having signed a new contract with his employers in January, Inter have struck a deal worth £17m with Racing Club for Martinez’s signature, with the striker poised to undergo the first part of a medical in Argentina this week.

Arsenal are clearly in the market for a young striker given they are also interested in signing Willem Geubbels from Lyon, but the Ligue 1 club have slapped a £62.5m price-tag on the teenager also wanted by Liverpool, Tottenham, Chelsea, Manchester City, Barcelona and Bayern Munich.