Arsenal are ready to spend a major chunk of their transfer budget to sign one of France's best in January, The Star reports.

Southampton midfielder Morgan Schneiderlin came close to a switch away from the club over the summer, with Tottenham Hotspur keen on securing his services.

However, manager Ronald Koeman opted not to sell the talented midfielder, given his potential to improve at the South Coast outfit.

According to The Star, Schneiderlin looks to be the subject of transfer speculation once more, with Gunners boss Arsene Wenger keen on making a mega-offer for the French international in the New Year.

Arsenal play away at Liverpool in the Premier League on Sunday.