EXCLUSIVE: Arsenal have launched a £4million move for Italy defender Christian Panucci - and are also exploring the possibility of adding Brazilian striker Franca to the Highbury attack.

Panucci has publicly expressed his desire to leave Inter Milan and although former employers AC Milan have also shown an interest, Arsenal are still leading the chase.

The 27-year-old - a European Cup winner with AC Milan and Real Madrid - was in London this week, joining close friend and AC Milan star Alessandro Costacurta at Wednesday's match between England and Ukraine.

Arsenal have made three approaches to Inter, returning after an initial bid of £3m was rejected, and have now been given permission to discuss personal terms.

Panucci's massive wage demands - he earns £60,000 a week at the San Siro - will certainly test the north London club's resolve during a summer that has already seen hectic transfer activity.

The arrival of Panucci, able to play anywhere across the back but most comfortable at right back, would bolster the side's ageing defence.

However, manager Arsene Wenger is also seeking to strengthen his front line and he flew to Brazil this week to eye up Sao Paulo striker Franca, scorer of Brazil's goal in Saturday's 1-1 draw with England at Wembley.

Sources in Brazil say Sao Paulo expect Wenger to return with an official enquiry but add that the club will ask no less than £13m for the 24-year-old, who is undoubtedly the unrivalled star of their team.

Arsenal are also looking to add to their midfield, with Wenger resigned to losing Emmanuel Petit.

The unsettled French international, who said this week that he wanted to move to a 'dream club', is expected to leave Highbury if interest in Italy and Spain is converted into a reasonable offer.

Wenger has already preempted the loss by signing Cameroon international Lauren - a midfielder who is also comfortable in central defence - for £7m from Real Mallorca this week.

The Arsenal manager is also closing in on Lens midfielder Alexander Nyarko after meeting with the player's representatives in Strasbourg. A bid was due to arrive in Lens this week.

Personal terms have been agreed with Marseille's Robert Pires, leaving both clubs to finalise the £6.5m transfer first revealed in Soccernet.