Arsenal are bracing themselves for a fight to keep Lucas Torreira as AC Milan prepare to make a formal offer for the midfielder.

The 23-year-old is keen on a return to Italy after just one season in north London, but the Gunners are in a strong position having signed him from Sampdoria last summer on a contract which runs until 2023.

However, Milan are encouraged that Torreira wants to leave and a bid will test Arsenal’s resolve, especially in light of a need to supplement their own £40million summer transfer budget through player sales.

Milan appointed former Sampdoria boss Marco Giampaolo last week, a factor which makes them favourites over Napoli to land Torreira.

Arsenal paid Sampdoria £27m for Torreira and believe his value has increased significantly after a promising first season in England during which he made 50 appearances in all competitions.

There has been speculation in Italy that Milan are exploring the possibility of an initial loan deal with an option to pay a fixed price to make the transfer permanent.

But the Gunners are believed to prefer a straight-cash sale if they eventually admit defeat in trying to keep Torreira at the club.