Arsene Wenger has confirmed that Arsenal are "active" in the January transfer window, but insists that his side have yet to prepare a bid for Bordeaux forward Malcom.

The Gunners could be about to lose Alexis Sanchez to one of their top-flight rivals, as Manchester United and Manchester City are reportedly battling it out for the Chilean's signature.

Wenger has been on the lookout for new attacking recruits, with Malcom one of many names to have been linked, though the Frenchman has attempted to play down suggestions that Arsenal are in talks with Bordeaux.

"Malcom is a good player but nothing is happening. We are not on that case at the moment," he told reporters.

Asked if there will be any incoming activity this month, Wenger added: "I don't rule it out - at the back, in midfield or upfront.

"We are open, we are in the market, we are active, but I don't want to give you news I can't confirm after. In this transfer market it's very difficult."

Tottenham Hotspur and Manchester United have also been tipped to make a move for Brazil Under-23s forward Malcom, who is valued over the £30m mark.