Wolfsburg have confirmed the capture of Bayern Munich midfielder Luiz Gustavo.

The Brazilian had been a target for Arsenal, but has chosen to remain in the Bundesliga.

The versatile 26-year-old has signed a five-year deal with the club.

Arsenal reportedly have €100 million to spend this summer but all they have to show for it so far is teenager Yaya Sanogo on a free transfer.

However manager Arsene Wenger has confirmed that the Gunners will still be involved in the market until transfer deadline day.

Acquiring a central midfielder is all the more urgent for Wenger as Mikel Arteta will be out of action for up to six weeks.

The Spanish midfielder has a torn quadricep and could be out for up to 6 weeks but the Gunners boss will not commit to a timescale.