The Daily Mirror claim Aaron Ramsey will leave Arsenal and that there is now no contract offer on the table from the club.
There has been speculation over the Wales midfielder’s future for some time – his current Gunners deal expires at the end of the season.
The Mirror say both parties were confident of an agreement but that talks have broken down to such an extent that there is no contract for Ramsey to sign and the club therefore stand to lose him on a free transfer next summer.
Chelsea are said to be interested in signing Ramsey, as are Manchester United and Italian clubs Juventus and Lazio.
The Mirror also claim Arsenal are interested in Everton youngster Ryan Astley.
The 16-year-old defender made his debut for the Merseyside club’s under-23 side in March and is apparently yet to be offered a professional contract.
The Mirror say Arsenal are aware of this and are among a number of clubs monitoring Astley, who is regarded as one of Everton’s best prospects.
Astley is still on scholarship terms at Goodison Park and would therefore be able to leave the club at the age of 17 if he does not sign a professional contract.