Arsenal and West Ham look set to miss out on Celta Viga striker Nolito, who is on the verge of joining AC Milan.
The Italian club have stepped up their chase for the in-demand Spaniard by agreeing personal terms with his representatives over the past week.
Arsenal made attempts to sign the 29-year-old in January and last summer but never did enough to persuade Celta Viga to sell.
West Ham were also possible suitors for Nolito but, according to El Mundo Deportivo, Milan are now at an advanced stage of an agreement with Celta Vigo, who are ready to accept around £12m for the forward.
Celta had offered Nolito a new contract earlier this season but the player was clearly aware of the interest from abroad in him and opted against committing his future to the La Liga side.