Arsenal are set to be thwarted in their pursuit of defender Lukas Klostermann, with RB Leipzig reportedly in the process of offering the right-back a new contract.

The Gunners were heavily linked with the 23-year-old in the summer, especially after they allowed Stephan Lichtsteiner to leave the club on a free transfer, but Unai Emery instead opted to strengthen other areas of his squad.

However, it was believed that Arsenal would return for the German defender in January to offer them more defensive options for the second half of the season.

The North London club's interest, and that of Atletico Madrid, has led Leipzig to offer Klostermann improved terms, with sporting director Markus Krosche telling Bild: "We have said that we would like to extend Klostermann's contract, and we are in talks.

"But we don't feel any pressure. It's important for me that you talk to the boys early enough for them to have time to think about it."

The German international has made 12 appearances for club and country this season, scoring one goal.