River Plate midfielder Exequiel Palacios has confirmed he is the subject of Arsenal interest.

He came close to joining Real Madrid in January before injury scuppered the move.

Palacios, who has suffered Copa America heartache with a hamstring injury forcing him to withdraw from the Argentina squad, revealed he is wanted by Arsenal - but admitted Real Madrid are also still keen.

Asked about his future, Palacios declared: "I'm proud clubs like Real Madrid and Arsenal are interested in me."

His release clause reportedly stands at £18m, although Real Madrid were reported to have agreed a £20m fee last year.