Manchester United reportedly knocked back an approach from Arsenal for full-back Luke Shaw during their ongoing Alexis Sanchez negotiations.

The two teams have been locked in talks over the past week regarding a move for Sanchez, who is believed to have now agreed on personal terms with Man United.

Henrikh Mkhitaryan will head the opposite way as a member of the transfer; however, according to The Sun, Arsenal originally wanted Shaw as part of the exchange agreement.

Man United was quick to turn down the offer, though, and alternatively intend to offer the 22-year-old – strongly praised by Jose Mourinho this week – a new agreement before the end of the campaign.

The story suggests that Arsenal could make a fresh offer for Shaw in the summer, but, as they want to keep a close eye on developments.

Meanwhile,  Leicester City attacker Riyad Mahrez reportedly favours a move to Arsenal this month, despite beginning talks with Premier League rivals Liverpool.

The African is believed to be at the middle of a transfer tug-of-war between the two sides, both of whom are set to spend big to land one of their top targets.

The Reds were the first to make a move as, according to The Express, negotiations are already underway with Leicester and Mahrez over the terms of a January switch.

However, the same report indicates that the 26-year-old is holding out for an offer from Arsenal, which is incredible to arrive until they offload Alexis Sanchez to Manchester City.

City manager Claude Puel reiterated on Thursday that he is keen to keep Mahrez at the King Power Stadium, where the football handed in a transfer request at the start of the season.