Arsenal target Kepa Arrizabalaga is allegedly on the verge of signing a new contract with Athletic Bilbao.

The 23-year-old goalkeeper, who has also been linked with Real Madrid, is on course to agree a lucrative contract extension which includes a £66.5m release clause, according to Marca.

Arrizabalaga's current contract is up at the end of the season and includes an £8.8m buyout clause.

Although the report does not mention the length of the mooted new deal, it claims that the stopper will earn around £2.7m per year if he puts pen to paper.

Arrizabalaga has been touted as one of the best young goalkeepers in Europe and has drawn comparisons to Manchester United's David De Gea.