Valladolid is expected to make a decision on which club he will join on Monday.
According to reports, Premier League leaders Arsenal are set to hold further talks about signing Real Valladolid right-back Ivan Fresneda in January.
Despite interest from Newcastle United, who have now turned their attentions to other transfer targets, the Gunners are thought to be the favorites to sign the 18-year-old.
Ben White has been in good form, but Arsenal manager Mikel Arteta is looking to strengthen his options at right-back, with Cedric Soares rumored to be leaving for Fulham and Takehiro Tomiyasu struggling with injuries this season.
According to the Daily Mail, Arsenal will hold more talks with Fresneda’s agent this week and could sign him for a bargain price of £8.8 million due to a buy-out clause in his Real Valladolid contract.
Fresneda, who has played 14 games for the La Liga club since joining last season, would most likely become Arsenal’s third signing of the January transfer window as the Gunners look to strengthen their title bid.
According to The Athletic, both Arsenal and Dortmund have agreements in place.
Valladolid is expected to make a decision on which club he will join on Monday.
Regardless of whether he joins Arsenal or Dortmund, Fresneda will be loaned back to the Spanish club for the rest of the season.
The teenager is a capable defender as well as an attacking full-back.
The Gunners have already signed Leandro Trossard from Brighton for £27 million.
The north London club is also expected to complete a deal with Spezia in Italy for Poland international centre-back Jakub Kiwior.
Meanwhile, according to reports in Spain, Real Sociedad midfielder Martin Zubimendi has turned down a move to Arsenal despite the Gunners being willing to activate his €60 million (£52.6 million) release clause.
Zubimendi signed a new contract with Real Sociedad in October, tying him to the Spanish club until 2027.
The 23-year-old Spaniard has also been strongly linked with a move to Barcelona.