The 31-year-old contract is due to expire this summer and he has been unable to reach an agreement over a new deal with Chelsea.
According to The Guardian, Willian has now turned down Chelsea’s offer of a two-year deal and the club’s hopes of keeping hold of the Brazil international are now ‘receding’.
Willian is demanding a contract that runs for the next three years and The Guardian reports that Arsenal are willing to meet the winger’s request.
Arsenal are also in a favourable position because Willian is happy to remain in London and has shown no hesitation in joining a rival club.
Speaking in May, the Brazilian said: ‘If I leave Chelsea with no trouble and leaving the doors open, it would be fine to move to a rival club.’]]
In Manchester, Jordan Sancho is close to securing a move with the red devils from Borrusia Dortmund.
The German club have told United they want in excess of £100m for the 20-year-old England winger.
There is no agreement yet on a fee, which would be paid in instalments.
Dortmund have set the deadline because they want undisturbed preparation for the 2020-21 Bundesliga season.
The new campaign starts on 18 September, with the transfer deadline for international deals on 5 October.
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