Real Madrid are set to exploit Arsenal’s financial woes by making an ambitious swoop for Cesc Fabregas.

The Spanish giants are keeping up their pursuit of Liverpool midfielder Xabi Alonso but if agreement cannot be reached with the Reds, Fabregas is high on their wish-list.

The Gunners will demand £40million for their Spanish star but Real Madrid are confident of negotiating a smaller fee.

Fabregas is frustrated at the lack of big name signings at the Emirates and the club’s cashflow problems deepened yesterday when a proposed rights issue to generate new cash which was put forward and underwritten by the Russian oligarch Alisher Usmanov, was turned down by the Arsenal board.

Chief executive Ivan Gazidis confirmed the subject was given due consideration, but has been turned down in favour of the status quo which sees the Emirates Stadium club remain self-financing.

Real Madrid, who are chasing a creative midfielder, are now studying all options — including Fabregas. Arsenal are also fearing that Barcelona — Fabregas’ hometown club where he began his football career — will come calling.

Robin van Persie has ended speculation on his Arsenal future by signing a new, long-term deal which is reported to be worth some £80,000-a-week.

Belfast Telegraph