Arsenal dealt huge blow as key transfer target agrees new contract, Mikel Arteta will be devastated

Arsenal have received a major blow following the news Brighton midfielder Moises Caicedo has extended his contract at the club.

Mikel Arteta saw two bids rejected for the 21-year-old in January, with the second reported to be as high as £70m.

Meanwhile, multiple reports were claiming that the Gunners would return for the player in the summer.

However, Brighton have confirmed that the Ecuador international has committed to his long term future at the Amex.

Caicedo signs new Brighton contract

In a twist of events, Caicedo has penned fresh terms with the club, signing a new deal which will keep him at the Amex until 2027, with an option of an additional year.

An official club statement read: "Moises Caicedo has committed his long-term future to the Albion by agreeing a new contract that runs until 2027, with a club option for an extra year."

Respected journalist Fabrizio Romano reports that Caicedo will also receive a significant pay rise.

His decision may come as a surprise with a whole host of top clubs showing interest in signing the talented midfielder, including Chelsea. However, the Blues opted to sign Enzo Fernandez from Benfica instead.

Whilst Caicedo went public in January, expressing his desire to leave the south coast club.

Despite his best efforts, the Seagulls stood firm – with Arsenal forced to sign Jorginho from Chelsea instead, in a late move on deadline day.

Following the agreement, Brighton boss Roberto De Zerbi said: “This is fantastic news for the club, our fans, for me and most importantly for Moises.

"It will make us stronger as we move forward towards our targets on the pitch."