Arsenal-linked Matheus Cunha is holding a medical ahead of a move to Wolves, with a deal reportedly agreed with Atletico Madrid.

Sky Sports reported on Tuesday night that Atletico Madrid had agreed a deal with Wolves for the transfer of Matheus Cunha, with personal terms also having been agreed.

The player is set to move on an initial loan deal with an obligation to buy at approximately £34m, and he could be involved as soon as January 4th – Wolves’ first game after the window officially opens.

Simon Stone of the BBC then reported that Cunha was due to have his Wolves medical on Wednesday, and he was Julen Lopetegui’s top target for the winter window.

This news seemingly puts to bed any rumours of an Arsenal move for the player.

The Gunners were said to be one of the clubs in the mix for Cunha, weighing up whether to enter the running as Mikel Arteta considers how to deal with the loss of Gabriel Jesus to injury.

As well as Wolves, Everton and Leeds United were also showing serious interest, and Aston Villa got a mention but didn’t seem to be as heavily involved as their Premier League rivals.

But it looks like Wolves have beaten off the competition and will land their man in January, barring any issues in the medical.

Cunha is apparently unhappy at Atletico, taking issue with his minimal minutes in Madrid.

Since signing for Atletico in the summer of 2021, Cunha has made 54 appearances, which sounds like an excellent return. But only 11 of those appearances were starts, with the other 43 coming from the bench.

The Brazilian seemingly missed out on a World Cup call-up in part because of how little he was playing for his club.

In total, Cunha has played 1,758 minutes for Atletico Madrid, scoring seven goals, assisting six, and winning two penalties leading to goals. The player will want to be much more involved on the pitch at his next club.