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Arsene Wenger feels he needs additional depth on the left, and he has now targeted the highly-rated 26-year-old.
Monreal has nine caps for Spain, and joined Malaga on a five-year deal from Osasuna in 2011.
Now he looks set link-up again with former team-mate and compatriot Santi Cazorla - who made the same move in the summer.
Arsenal are now pushing to tie up the deal, that Wenger had hoped to do before the end of the deadline.