Boss Mikel Arteta has already admitted the club is a “bit short” in attacking areas, especially with Gabriel Jesus needing an MRI scan on an injured groin that saw him miss the 2-0 win away at Aston Villa on Saturday.
Links to Athletic Bilbao’s Nico Williams have been reported but a move for him is unlikely given the finances of the deal – especially in terms of wages.
Arsenal are looking at numerous options having also received £27m up front from Fulham for Emile Smith Rowe already this window.
With Merino confirmed, Arsenal's total summer spending will exceed £100m having also spent £27m on keeper David Raya and £42m on defender Riccardo Calafiori.
Former Arsenal goalkeeper Wojciech Szczesny has announced his retirement from professional football.
The 34-year-old broke the news to fans with an emotional statement on Instagram.
It read: "I left Warsaw, my hometown in June of 2006 to join Arsenal with one dream - to make a living out of football. Little did I know it would be the start of a journey of a lifetime.
"Little did I know that I would get to play for the biggest clubs in the world and represent my country 84 times. Little did I know that not only would I make a living out of the game but the game would become my whole life.
"I didn’t just realise my dreams, I’ve arrived where my imagination wouldn’t even dare to take me. I played the game at the highest level with the best players in history without ever feeling inferior.
"I’ve made friends for life, created unforgettable memories and met people who have made an incredible impact on my life. Everything that I have and everything that I am I owe to the beautiful game of football…"
The Gunners will be a part of the new Champions League format this season.
Each club will play eight matches in the opening phase - against seeded opposition, in a system designed to ensure that teams play opponents of similar difficulty.
The top eight teams in the “final” table will automatically go through to the last 16, where they will be joined by the eight play-off winners of ties between the sides placed ninth to 24th in the table.
Despite there being just eight matches in the opening phase, European matches will be spread over 10 midweek slots.
The new Champions League format also sees the implication of two additional qualifying spots.
They will be awarded to the nations that are top of the “country coefficient” chart each season.
Former Arsenal and Liverpool star Alex Oxlade-Chamberlain is in talks to complete a shock return to the Premier League.
The midfielder, 31, has been frozen out at Turkish club Besiktas - and is one of NINE players put up for sale - after they struggled to a sixth-place finish last season.
Now, Brentford are interested in a move for the former England star.
Sheffield United are also said to be plotting an ambitious loan move for Oxlade-Chamberlain.
Charlie Patino has sent an emotional farewell to Arsenal and Gooners everywhere after joining Deportivo La Coruna.
The midfielder joined the club from Luton Town aged 11 but only played twice for the club.
He has now signed a four-year deal with the Spanish second division side after decent loans at Blackpool and Swansea.
Dear Arsenal fans.
Firstly, I just want to say thank you for all the amazing memories that I have had at this historic club. It has been an honour to represent Arsenal on and off the pitch.
I joined the club when I was 11 years old with a dream of one day making my debut for Arsenal. I was fortunate enough to make my dream a reality and for this I will always be grateful.
Thank you to the fans, team mates, coaches and everyone associated to the club. Best of luck for the future!!
Saudi Arabia’s Pro League have also expressed interest in him.
Sterling wants to stay in England’s top flight but still has three years left on a £325,000 a week contract plus bonuses.
He will accept a compromise if the overall severance package and alternative club is suitable but he will not ask for a transfer.
And that is putting pressure on Chelsea’s sporting directors Paul Winstanley and Laurence Stewart to come up with an agreeable golden goodbye to see Sterling quit.
Possible Man Utd, Arsenal and Chelsea target Ivan Toney was left out of Brentford’s squad for the second Premier League game in a row, as talk of his transfer intensifies.
Manager Thomas Frank said: “The status is the same as last week.
“Things are going on with transfer speculation so the decision is the same. He is training well, there is no problem.
“I’d rather focus on the game and the players that are playing instead of talking about him.”
Saudi Arabia’s Pro League have also expressed interest in him.
Sterling wants to stay in England’s top flight but still has three years left on a £325,000 a week contract plus bonuses.
He will accept a compromise if the overall severance package and alternative club is suitable but he will not ask for a transfer.
And that is putting pressure on Chelsea’s sporting directors Paul Winstanley and Laurence Stewart to come up with an agreeable golden goodbye to see Sterling quit.
Victor Osimhen has been linked in the past year with Arsenal as well as Manchester United - and, most recently, Chelsea.
But now it's claimed Liverpool is the Napoli striker's likeliest destination if he switches to the Prem.
Osimhen has reportedly ruled out switching to Saudi Arabia.
And although Chelsea have been the main movers this summer, The Times reckon Arne slot's Liverpool are in fact best placed to recruit the Nigerian 25-year-old.