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Arsenal are preparing a £10 million bid for German international centre-back Per Mertesacker, if a deal for Everton's Phil Jagielka cannot be reached.
According to the Daily Star, Gunner's chief Arsene Wenger is ready to give up in his attempt to sign the Toffee's defender after having had a £14m offer rejected by his counterpart David Moyes earlier this summer.
Wenger, who needs another centre-back to replace the out-going William Gallas and Mikael Silvestre, is considering ceasing his efforts to sign the 27-year-old and instead will turn to Mertesacker.
The towering German international, who played an integral part in his nation's World Cup in South Africa, has two years left on his current deal with Werder Bremen.
Despite the £10m capture of centre-back Laurent Koscielny from French club Lorient, Wenger is still looking to strengthen his back-line ahead of the new season.