Vinicius Jr's future at Real Madrid is expected to be decided this week, with Premier League champions Arsenal pursuing a blockbuster move for the Brazilian winger, City AM understands.

The 26-year-old is under contract at Los Blancos until 2027, but contract negotiations that began over a year ago have stalled in Spain, creating an opening for Arsenal to attempt to bring him to England. The prolonged impasse has been further complicated by sustained interest from the Saudi Pro League, which has reportedly courted Vinicius with the kind of eye-watering financial package that has already prised several elite players away from European football and complicated contract talks across the continent.

Arsenal are reportedly growing in confidence over a proposed £128m transfer for Vinicius, a fee that would shatter the club's existing transfer record. The player is scheduled to hold fresh discussions with Real Madrid executives today, and sources with knowledge of the situation indicate the uncertainty will be resolved by the end of the week — either resulting in a renewed contract at the LaLiga club or a move abroad for the first time since he arrived from Brazil in 2018.

Real Madrid, who this season will be managed for a second stint by former Chelsea and Tottenham Hotspur boss Jose Mourinho, could offer Vinicius an improved deal to retain him.

Vinicius has experienced a complex tenure in Spain. His trophy haul includes three LaLiga titles and two Champions League trophies, and he has established himself as one of the most electrifying attacking talents in the world game, but his time there has also been marred by repeated instances of racism directed at him — an issue that has drawn international condemnation and repeatedly placed Spanish football's governing bodies under scrutiny.

Vinicius Jr to Arsenal?

The Brazilian has not submitted a transfer request, according to multiple reports, and returned this week to pre-season training at Real Madrid's Valdebebas complex ahead of their opening LaLiga fixture away to Espanyol on 22 August.

He is reportedly seeking a substantial increase on his current £300,000-per-week salary in the Spanish capital — equivalent to approximately £15m annually. Arsenal are said to be prepared to offer him £25m per year to facilitate a move to London, a figure that would place him among the highest-paid players in the Premier League and test the boundaries of the division's Profitability and Sustainability Rules.

Arsenal manager Mikel Arteta, who has led the club since 2019, is aiming to build on last season's Premier League title and Champions League final appearance by securing the club's first European Cup. Landing a player of Vinicius's calibre would represent a statement of intent on a scale rarely seen in the club's transfer history.

Arsenal have already been active in the transfer market this summer, making Piero Hincapie's loan from Bayer Leverkusen permanent, signing Christos Tzolis for £34m from Club Brugge, and completing a free transfer for Leeds United goalkeeper Illan Meslier.

On the outgoing side, Leandro Trossard, Karl Hein, and Jakub Kiwior have departed for Besiktas, Werder Bremen, and Porto respectively.