Arsenal are interested in signing Jamie Vardy and would like to hold talks with Leicester about signing the striker, Sky sources understand.
It is understood the 29-year-old England striker has a £20m release clause in the new four-year contract he signed in February and the Gunners are prepared to meet that clause.
Sky sources understand Arsenal are making their move after Manchester United turned down the chance to register their interest, with Jose Mourinho only wanting to sign one striker this summer - Zlatan Ibrahimovic.
The Portuguese also believes Marcus Rashford can have a huge impact at Old Trafford next season, with Mourinho determined to continue United's legacy of bringing through their young talent.
Vardy is currently on duty with England ahead of Euro 2016, following an astonishing season as the Foxes were crowned Premier League champions, scoring 24 goals in all competitions.
The former Stocksbridge Park Steels, Halifax Town and Fleetwood Town forward increased his wages to £80,000 per week when he signed a new deal until 2019 earlier this year.
He made his England debut last June and has scored three goals for the national side since, and is expected to be influential in England's campaign for the European Championships.
Arsenal are keen to improve their side after finishing second in the Premier League last season, and do so quickly having already signed the Borussia Monchengladbach midfielder Granit Xhaka.
Vardy was asked by Sky Sports News HQ last month about his future, and about the possibility of big clubs trying to sign him, and he said: "I just won the Premier League and now I'm in the Champions League. I'm happy here."
Source - sky sports
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