Arsenal still must settle on a fee with FC Cologne for striker Lukas Podolski.

The Daily Mail says it is understood the 26-year old is happy with the terms on offer at Arsenal and a deal can go through at the end of the season, provided a fee can be agreed.

Cologne are ready to dig their heels in and demand around £15million after being left unimpressed by Arsenal's valuation of £8m.

The Bundesliga side are bracing themselves for some hard bargaining with their north London counterparts but sense Podolski will be spearheading Arsenal's attack next season.

Some high-profile signings would help under-fire Arsenal boss Arsene Wenger stave off a growing rebellion among supporters and dispel any misgivings Robin van Persie may have about committing himself to the club beyond a contract that runs out at the end of next season.

Polish-born Podolski is in his second spell at Cologne, after a three-year stay at Bayern Munich, and has impressed on the international stage.