AC MILAN have handed Arsenal a transfer blow after agreeing on a new long-term contract for Ismael Bennacer.
The midfielder has been a transfer target for the Gunners as they look to add some more steel to their midfield to boost their unlikely Premier League title challenge.
But the 25-year-old will sign the new contract in the next few days, according to Frabizio Romano.
The transfer journalist has also suggested that the contract will continue to have the pre-existing £44million release clause.
AC Milan did want to remove the clause but have agreed to keep it in his deal, it is believed only to be open for teams from abroad.
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Bennacer's new contract at the San Siro will run until 2027.
The Gunners had thought that they would have been able to sign the Algerian on a cut-price deal due to his contract expiring in the summer of 2024.
However, a move for their former youth player now seems unlikely unless the club are willing to pay his release clause.
It has previously been said how Arsenal chiefs were left furious at their decision to sell Bennacer in 2017.
He featured once for the Gunners first team during the 2015-16 season after his arrival from Arles.
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Bennacer would have been a good player for the Gunners as he would have been able to compete with Granit Xhaka and Thomas Partey in the side.
The midfielder was also linked to Premier League rivals Chelsea, but he will be much harder to get out of Italy now.