Liverpool remain in the hunt for Balotelli however.
Arsenal are ready to give up on their pursuit of AC Milan striker Mario Balotelli as they have signed Alexis Sanchez from Barcelona for £30 million, reports the Daily Express.
Arsene Wenger was reportedly keen on landing Balotelli until recently, but the Gunners’ capture of Sanchez means that Liverpool could now be after his services instead.
The Reds are interested in the 23-year old Italian after agreeing to part with superstar Uruguayan striker Luis Suarez this summer, and are likely to table a bid for the former Manchester City man.
Balotelli’s current employers Milan seem confident of keeping him despite all the controversy surrounding the striker.
Milan’s new boss Filippo Inzaghi was quoted saying recently, “Balotelli? I’m calm, I spoke to him after Italy’s elimination.
“The criticisms have to make stronger. He’s an asset to the Italian game and Milan. I have to utilise his skills – he can make the difference.
“He has asked for a trainer a week before he returns to Milanello and this is important.”
Arsenal meanwhile are now reportedly pursuing cheaper options in the £8 million rated Loic Remy to supplement the signing of Sanchez and stake a genuine claim for the Premier League title next season.
READ MORE: Arsenal transfer rumours.