Arsenal have now joined Manchester United in the race for Atletico Madrid defender Jose Gimenez, according to reports in the English media.
Arsene Wenger has cited Valencia's reluctance to sell as a reason behind the delay in signing Mustafi
Arsenal made two late signings to placate the fans who were demanding new faces in the squad, but have they done enough this summer to ensure that they can go one better than their second placed finish last season?
Arsenal have been dealt a huge blow in their pursuit of the Germany defender, with Valencia manager Pako Ayestaran declaring that he will stay at the club this season.
Arsenal have been in talks to sign Valencia centre-back Shkodran Mustafi, but the deal may have become significantly more complicated as the La Liga outfit are now reportedly looking for £50 million for the Germany international.
Arsenal FC's hopes of signing Valencia centreback Shkodran Mustafi has been dealt a huge blow, as Serie A giants AC Milan have also joined the race to sign the German defender, according to reports from the Spanish media.
Germany began their Euro 2016 campaign in the best possible way after they overcame a stern Ukraine side to prevail 2-0. Shkodran Mustafi and Bastian Schweinsteiger were the scorers on the day for Die Mannschaft.
With Mamadou Sakho facing a lengthy ban for his doping violation and with the uncertainty surrounding the Anfield future of Kolo Toure and Martin Skrtel, it is clear that defence is going to be the top priority for Klopp in the summer transfer window.
Shkodran Mustafi has endured a fine season in defence for Valencia making 41 appearances for the La Liga outfit.
The German's representative insists his client is happy at Valencia but admits that the top two teams in Spain have shown an interest in him recently