talkSPORT are claiming that the Gunners are optimistic that a deal to sign the Germany international is still alive as Arsene Wenger looks to bolster his defensive options.
The same article states that Mustafi has already agreed a deal with the Gunners to move to the English capital should Arsenal agree a fee with the La Liga outfit.
The English media outlet adds that Arsenal will turn their attentions to Bayer Leverkusen defender Omer Toprak or Fenerbahce’s Danish star Simon Kjaer if the Gunners fail to sign Mustafi.
Arsenal lost 4-3 to Liverpool in their opening Premier League game of the season at the Emirates Stadium on Sunday afternoon.
Wenger was forced to start with Calum Chambers and Rob Holding at the centre of his defence following injury to Per Mertesacker and Gabriel Paulista.
France defender Laurent Koscielny wasn’t fit enough to assume his place in Wenger’s side for their Premier League opener after his involvement in Euro 2016 and subsequent late return to his club.
MORE: Man United latest news
MORE: Arsenal latest news
MORE: Chelsea latest news
MORE: Liverpool latest news