Jose Luis Gaya
Jose Luis Gaya (right) has been in fine form this season after being made a regular first team player by new Valancia manager Nuno Espírito Santo.Reuters

Arsenal are reportedly in pole position to land Valencia's Jose Luis Gaya this summer following reports of the La Liga club breaking off contract negotiations with the left-back.

The 19-year-old defender has been in fine form this season after being made a regular first team player by new Valencia manager Nuno Espírito Santo.

His impressive performances caught the eyes of many top clubs, and due to this reason Valencia were keen to offer him a new three-year contract even though his current deal runs out only in 2018.

Valencia, along with the new contact, reportedly wanted to increase the youngster's release clause from £13 million to £29 million to discourage other sides from signing him.

However, the 19-year-old reportedly did not want his buy-out clause to be more than £21.6 million. And finally talks between the player and Valencia reportedly broke down and the La Liga side withdrew their offer.

And according to the Metro, Arsenal are now looking to take advantage of the situation and sign him this summer by triggering the youngster's current release clause of £13 million.

Although the Gunners already have two left-backs in Nacho Monreal and Kieran Gibbs, Arsenal boss Arsene Wenger reportedly feels that Gaya will be a star in the future, and this is a very good opportunity to sign him on the cheap.

However, the north London club will probably not be getting the youngster's signature that easily as Real Madrid are also believed to be tracking the 19-year-old.

Meanwhile, the Evening Standard claims that Manchester City midfielder James Milner will only join Arsenal on a free transfer this summer if he is offered four-year deal.

The 29-year-old, who is currently on the final year of his contract with City, is reportedly looking to leave the Etihad this summer, rejecting a new three-year extension worth £80,000 a week.

As a result, a host of clubs including Arsenal, Liverpool, Valencia and Inter Milan are reported to be interested in the midfielder, who has been very impressive this season stepping up to lead the Citizens attack when all their strikers were sidelined with injuries.

However, the England midfielder has made it clear that he will only join a club that will offer him a four-year deal.

The Gunners are reportedly very keen on signing him on a free transfer, but they are still wary of the midfielder's demand of a four-year contract considering that he is already 29-year-old.

However, they need to hurry up and quickly make a decision as a lot of clubs are interested in Milner and they may be willing to accept his contract demands.