SOURCES at Arsenal were last night claiming victory in the race to sign Gary Cahill.

It is understood that representatives of the England defender spoke to the Gunners over the weekend, and the club are willing to match Wanderers’ £17million valuation.

Part of that fee could be paid via a player swap, with highly-rated Spanish defender Ignasi Miquel known to interest Owen Coyle. Rumours emanating from the Emirates have also suggested striker Nicklas Bendtner could be used as a makeweight in the deal.

Arsenal are confident of signing the 25-year-old by the end of the week, but neither Coyle, nor Wanderers fans should be counting their chickens just yet. Manchester City reached a similar stage in negotiations in May but have since dropped off the pace because of internal issues over transfer policy.

Cahill wants to be playing in the Champions League next season and, while he is reluctant to move away from the North West, he is known to be a huge admirer of the Gunners’ style of football. Former Wanderers loanee Jack Wilshere has also voiced his approval, urging Cahill towards a move to north London.

Reports in the capital also suggest the player has reservations over his first-team chances at Eastlands, with Vincent Kompany and Joleon Lescott the preferred pairing for Roberto Mancini and Kolo Toure due to return from a suspension in September.

Wanderers have refused to comment on the reports but would no doubt welcome a break in what appeared to be a frustrating stalemate between Arsenal, City and Tottenham for the defender’s signature.