Nico Williams is reportedly in talks to sign a new contract at Athletic Club, despite significant transfer interest from Arsenal and Chelsea.

The Spain international has two years remaining on his current deal at San Mames and he has been heavily linked with a departure this summer following substantial talk of a Premier League move.

Arsenal and Chelsea both view Williams as a primary transfer target amid their pursuit of a new left winger, while Barcelona and Real Madrid are also known admirers of the 22-year-old.

Chelsea even held talks with Williams’ representatives over the weekend, according to reports, as they look to bring in a replacement for Jadon Sancho, who will return to Manchester United this summer.

However, Arsenal and Chelsea have been dealt a hammer blow in their chase of Williams’ signature as he is now in discussions to extend his current contract at Athletic Club.

That is according to Ben Jacobs, who posted on X: “Nico Williams has began initial talks to renew his Athletic Bilbao contract.

“Parties discussing a salary pushing €10m, and release clause could increase should a deal be agreed. Not yet a guarantee.

“Suitors like Arsenal and Chelsea see value in Williams’ current €58m clause, and he remains on their radar, but overall cost of the transfer (wage and agent fees) make it expensive.