Arsenal boss Arsene Wenger has said that 'nothing is happening' in the club's pursuit of Pierre-Emerick Aubameyang.

Borussia Dortmund's sporting director Michael Zorc is said to have travelled to the English capital to finalise a deal with the Gunners, and a report from Kicker has since suggested that the club have failed with a £40m bid.

Wenger talked up the qualities of Aubameyang in the lead-up to the Crystal Palace, but the Frenchman has now, however, dismissed suggestions that the club are close to signing the Gabon international.

"January has been difficult for us, destabilising. We have had big players concerned with moving away which causes uncertainty," he told BBC Sport. "Aubameyang no, nothing is happening. He can be left out of the Dortmund team for different reasons, certainly not for transfer reasons at the moment."

Dortmund have apparently placed a £53m price tag on Aubameyang's head, and talks may drag on for a few more days with the Gunners reluctant to match the player's valuation.

Meanwhile, Wenger appeared to all but confirm that Alexis Sanchez is set to join Manchester United whilst Henrikh Mkhitaryan is due to move the other way as part of the agreement.

Arsenal clinched a convincing 4-1 win over Crystal Palace on Saturday afternoon, and this sees them within five points off fourth-placed Liverpool, who have a game in hand over Swansea City tomorrow.