Arsène Wenger has been told that he can have whatever transfer funds it takes to secure his main targets Alexandre Lacazette and Shkodran Mustafi.

Arsenal had planned to limit their summer transfer spending to £100 million and have already spent £30 million on Granit Xhaka, the Switzerland midfield player, but the club acknowledge that they may have to part with more than another £70 million to provide Wenger with the players he wants in an inflated market.

Arsenal had a £29 million bid for Lacazette rejected by Lyons last week and have yet to move for Mustafi, who is valued at £35 million by Valencia. Lyons are holding out for £40 million for the 25-year-old Lacazette, who signed a four-year deal with the French club