Arsenal are facing stiff competition to sign Brazilian striker Luighi, who has been on the Gunners' radar for over a year. Inter Milan and Borussia Dortmund have stepped up their interest after the 19-year-old extended his contract with Palmeiras until 2029, with a release clause of over £70m, although European clubs have previously negotiated lower prices with the Yellow-Greens.
The departure of Estevao, who joined Chelsea for £28m, is expected to provide more space for Luighi, which could help him secure a work permit in the UK. At Brazil's youth level, he made waves with two goals at the Under-17 World Cup in 2023, while earlier this year he played a key role in the Under-20 Copa Libertadores final with Palmeiras.
Reports of Arsenal's interest emerged in October, when journalist Joao Freire described him as a player "with an eye for goal and the ability to create space where there seems to be none". His athleticism, fluid movement and close ball control make him well-suited to the fast pace of European football, while his dribbling has similarities to the style of Wolves' Matheus Cunha.
Palmeiras are known as a talent factory that has exploded the careers of Estevao, West Ham's Luiz Guilherme, Manchester City's Vitor Reis and most recently Arsenal's Gabriel Jesus, which adds to the belief that Luighi is destined to reach the highest level. Inter discovered his talent last year after an Italian agent based in Brazil recommended him to the club, while Borussia Dortmund are closely monitoring as they look for a potential replacement for the left-back, following interest in Jamie Bynoe-Gittens.
With the contract renewed until 2029 and a high release clause, Palmeiras has given Luigi long-term security, but Inter and Dortmund could attempt an attractive offer in the summer, offering him the chance to improve in the Champions League and the pace of the European game.