TRANSFER NEWS: Arsenal & Chelsea Battle For £4m Barcelona Youngster

Chelsea and Arsenal are on high alert after talks between Barcelona and highly rated teenager Gerard Deulofeu broke down.

The Daily Mail says Arsenal and Chelsea are tracking the youngster after the 17-year old refused to sign a contract extension at the Camp Nou. Deulofeu has a £3.75million release clause but is unsure about signing a new contract unless he gets assurances about featuring in the first team soon.

Both London clubs apparently made an enquiry about him in the summer but were knocked back as Barca were confident about securing the players future.

Arsenal have a history of signing Barcelona youngsters, which include Cesc Fabregas, Guim Laporta, Hector Bellerin and Jon Miquel Toral. Chelsea have also recently captured midfielder Oriol Romeu.