Arsenal have suffered a blow in their bid to sign Joelson Fernandes from Sporting CP.

The Portuguese youngster is set to sign a new contract with the club.

The teenager was expected to join the Gunners through his £40 million release clause.

And A Bola claims Joelson is set to renew his deal, which currently expires in 2022.

It would include a higher release clause, which would make a move very complicated for Arsenal to complete.

Borussia Dortmund and Juventus also have interest in the winger.