Los Blancos re-signed Diaz last summer and offered him the #7 jersey as well. However, despite showing a lot of potential at Lyon, he was unable to replicate any of it for the Bernabeu side.
Arsenal are currently looking to sign a forward this summer who can operate on the wings as well. Wilfried Zaha is their #1 target but with Crystal Palace asking for £80 million, the Gunners have started looking elsewhere.
Mariano Diaz was offered to Tottenham as well but Spurs decided against signing him. Arsenal let go of Danny Welbeck in the summer but have got Gabriel Martinelli as his replacement.
Reports suggest that the Europa League finalists have a shoe-string budget this summer and are trying to get the best out of it. They are close to signing William Saliba for £27M but he will be loaned back to St Etienne for the season.
Meanwhile, a deal for Celtic full-back is close but they face competition from Napoli. They have had two bids rejected and the Scottish champions are not willing to let him go for anything less than £25M.
Rumour Checker: 4/10
Daily Star are not a reliable source but with Real Madrid looking to get rid of dead wood and Arsenal keen on signing a forward, the move might just be on the cards. However, The Gunners might look to loan him in for a season before signing him permanently.