Arsenal and Liverpool are set to battle it out for Pedro Neto's signature in the summer.

The Wolves winger, 23, has been back to his scintillating best in recent weeks after missing eight Premier League games with a hamstring injury.

According to Football Insider, Gary O'Neil's side are prepared to receive bids for the five-cap Portugal international amid long-term interest from the Gunners.

And Liverpool are also rumoured to be admirers of Neto and could join Arsenal in the transfer race when the summer window opens.

Neto is enjoying his most productive season to date in the West Midlands, registering eight assists in his 15 Premier League appearances to go with goals against Luton and Manchester United.

As well as showcasing his talent in the English top flight, Wolves' No7 is under contract until 2027, meaning he will not come cheap for potential suitors.

However, Molineux chiefs could be forced to sell one of their prized assets in order to comply with the Premier League's profitability and sustainability rules.

Wolves were unable to spend big last summer, with the financial restraints leading to Julen Lopetegui's departure on the eve of the season.

In other news

According to Marca, Paris Saint-Germain superstar Kylian Mbappe has yet to agree terms with Real Madrid as the Spanish club are struggling in negotiations with the striker's mother and agent, Fayza Lamari.

The Daily Mail report Newcastle are contemplating a summer move for Bournemouth defender Lloyd Kelly.

Mundo Deportivo claim Barcelona have no intention of letting Ferran Torres, 23, leave the club at the end of the season.