Eyes turn to FA Cup matters for Arsenal as they look to put the disappointment of a defeat in the Carabao Cup semi-final first leg behind them this weekend.

Arsenal face a mountain to climb in the second leg against Newcastle after falling to a 2-0 home defeat on Tuesday night. The Gunners are back in action on Sunday afternoon (3pm kick-off) when they host Manchester United at the Emirates Stadium in the third round of the FA Cup.

While the January transfer window is open, it doesn’t seem likely that any new incomings will be able to make their debuts with time ticking before the match comes around. There is however no shortage of reports surrounding who could be coming or going.

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Amid the reports, football.london have taken a look at some of the latest, and also given our own thoughts on the situation.

Nico Williams dilemma

Arsenal could face a stumbling block over a potential £50 million move for Athletic Bilbao winger Nico Williams, due to the player’s wage demands and tax implications. Mikel Arteta and Arsenal are long-term admirers of the 22-year-old.

However, the Mirror report that the player will want a wage of more than £300,000-a-week if he is to make a move. It adds that tax rules arround his current Bilbao deal means that it woud require a massive contract for his net earnings to reach that amount if he is to move to the Premier League.

FL says : Nico Williams is a long-term target for Arsenal, and someone who will add more attacking threat to Arteta’s team. But the club must make the decision on if they are willing to pay out that much on wages should they wish to complete a transfer.

Along with the £50 million fee, a wage of more than £300,000-a-week will be a big financial commitment for Arsenal to agree to, especially if he is also offered a long contract. With a summer move looking more likely, the club will have extra time to mull over the decision.

Arsenal could complete upgrade

Arsenal could replace Oleksandr Zinchenko with Theo Hernandez in the summer with interest in the former mounting.

The Sun report that Inter Milan are preparing a January bid for the Ukraine international and Arsenal are ‘open minded’ about letting him go. The report goes on to say that an exit for Zinchenko could lead to summer interest in AC Milan defender Theo Herndezwith Arteta a ‘huge fan’ of the player.

Hernandez is not the only defender linked with a move to the Emirates, with Mundo Deportivo reporting that Arsenal have joined the race for Barcelona defender Ronald Araujo. It is said that The Gunners are willing to ‘bid strongly; for the 25-year-old who could be willing to move in search of more game time.

FL says : Zinchenko has been a pretty reliable player for Arsenal to call on since his move from Man City, but he has fallen down the pecking order at the Emirates Stadium. Replacing him with Hernandez, even if it takes until the summer to do so, would be a big upgrade and good business for Arsenal.

The club will struggle to upgrade on William Saliba and Gabriel, but a move for Araujo could also be clever. Given Barcelona’s financial situation, the club may be able to get a good deal on the player, who would provide competition in the centre-back area.