Edu looks set to move to Real Madrid unless Arsenal improve their offer of a new contract.

The 26-year-old’s deal ends next summer and unless he agrees a new deal with Arsenal he will be in a position to leave on a free transfer.

He told Spanish newspaper Marca: “There are a lot of rumours around at the moment about whether I am going to Barcelona, Valencia or Real Madrid.

“I don’t see why I couldn’t play in Spain for Real Madrid, but I can’t say anything until 31 December.”

According to his brother and representative Amadeo Fensao, Edu is loooking for an improved deal from Arsenal.

He said: “Arsenal have made an offer, but we want a lot more.

“We are going to keep negotiating until 31 December but, if we don’t come to terms by then, we will look at other options.”