Tottenham Hotspur have reportedly decided to drop out of the race to sign Bordeaux winger Malcom during the January transfer window.

After contributing seven goals and four assists in Ligue 1 this season, a number of Premier League sides have been linked with making a move for the young Brazilian.

Arsenal are said to be the favourites to secure a deal for the attacker, and according to the Daily Mail, their efforts have been boosted by the decision of their North London rivals.

Spurs allegedly saw a bid of £31m rejected earlier this month, but Mauricio Pochettino is not interested in paying the 20-year-old's asking price of £45m midway through the campaign.

Arsenal manager Arsene Wenger has played down reports linking the Gunners with the player, despite potentially needing a replacement for Alexis Sanchez.

Manchester United - who are also said to be keen on Malcom - have reportedly agreed financial terms with Sanchez ahead of a January move to Old Trafford.