Villarreal appear to be resigned to the fact that Gabriel Paulista wants to leave the club for Arsenal. Speaking to the radio show El Larguero, on the network Cadena SER, Marcelino, the manger of Villarreal, said
I hadn't considered selling Gabriel, it's bad news from a sporting point of view. If both Gabriel and the club believe that his sale to Arsenal is the best for all parties, we will accept.
With Arsenal reportedly set to triple Gabriel's wages coupled with his desire to join the club and play in the Premier League, agreeing personal terms should not be an issue. Furthermore, according to El Larguero, the deal is close to completion, with Arsenal willing to activate the €20m release clause.
De La Morena asegura en @ellarguero que mañana Gabriel se marcha al Arsenal porque el equipo inglés pagará los 20 millones de euros— Xavi Sidro (@XaviSidro) January 20, 2015
However, the Guardian are still reporting that Arsenal have not yet agreed a fee with Villarreal, with the latest report indicating that not much has changed from last night's initial flurry of news. That means that obtaining a work permit will still be a potential roadblock to any deal.
One transfer that can be ruled out is Nicolas Otamendi. Valencia's position is that any club that wants him must pay his buy-out clause, which is €50m--a fee that would presumably rule out Arsenal, but not front-runners Manchester United.