By Rob Draper

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Arsene Wenger is ready to smash Arsenal's transfer record this week with bids for three of Europe's fastest-rising stars.

The news that the club are thinking big, with moves for Real Madrid's Gonzalo Higuain, Borussia Dortmund's Ilkay Gundogan and Bayer Leverkusen's Lars Bender, will come as a massive relief to Arsenal fans after years of frugality and summers of losing their own stars.

Big move: Arsenal want Real Madrid's Gonzalo Higuain

Big move: Arsenal want Real Madrid's Gonzalo Higuain

Arsenal chief executive Ivan Gazidis promised 'an escalation in our financial firepower' last week and Wenger is convinced he can transform his team into title contenders.

The Arsenal manager believes that Sir Alex Ferguson's retirement from Manchester United represents an opportunity for the for the club to regain some prestige and challenge for the title and the signing of Argentina striker Higuain is expected to be their most important transfer of the summer at a cost of 20million.

Wenger is also determined to bolster his midfield and his No 1 target is Gundogan, whose holding midfield role was crucial to Borussia Dortmund's impressive run to the Champions League final.

Gundogan scored their penalty equaliser at Wembley, but could not prevent Bayern Munich's 2-1 victory.

He would cost 20m but a bid for Bayer Leverkusen's 17m-rated Bender is also being lined up, in case Arsenal are unable to complete a deal on Gundogan. Any one of the potential fees for Arsenal's three targets would surpass the 15m record transfer paid for Andrey Arshavin in 2009.

Wenger's No 1 target: Ilkay Gundogan of Borussia Dortmund

Wenger's No 1 target: Ilkay Gundogan of Borussia Dortmund

Thinking big: Arsenal Arsene Wenger is ready to splash the cash

Thinking big: Arsenal Arsene Wenger is ready to splash the cash

Arsenal are ready to move now, having already been disappointed to miss their first target, Dortmund's Mario Gotze. The club had an earlier 25m bid for Gotze turned down but were hopeful of returning this summer with 32m, which would have activated his release clause. But Gotze announced in April that he would be joining Bayern.

The north London club are determined to move quicker in the transfer market ever since the debacle of 2011, which saw them lose Cesc Fabregas and Samir Nasri and scramble to replace them on the last day of the transfer window.

While Arsenal are confident of securing Higuain, there is still interest in him from Juventus, who have lost out to Chelsea in the race to sign Fiorentina's Stevan Jovetic.

Wenger has said that this summer is the first for two years in which he expects to keep all his key players. He has a reserve fund of around 70m to spend, although that has to cover wages as well. In Higuain's case that is likely to be 150,000 a week or almost 8m a year, making him Arsenal's top earner.

Impressive: Germany's Lars Bender

Impressive: Germany's Lars Bender (left)

Gundogan, 22, who has seven Germany caps, is seen as the perfect fit for the holding midfield role Wenger wishes to fill and his staff have scouted more extensively than ever before in the Bundesliga. 

But Gundogan may be difficult to prise away from Dortmund, with Real Madrid having expressed an interest in signing him in a year's time.

If that is the case, Wenger will move for Bender, 24, also a Germany international who has 14 caps and whose twin brother Sven also starred in Dortmund's Champions League run.

Arsenal will search for a centre-half and are willing to listen to offers for club captain Thomas Vermaelen.

The comments below have not been moderated.

Surprised that there not saying 100 million for Messi Ronaldo Falcao

I think an Arsenal employee starts these rumours in a pub (probably near White Hart Lane, where the DM reporters hang out) so that the real transfer targets are ignored, keeping the price lower.

When will the talk, and there has been lots of it, become action. Chelsea, Man City and Liverpool are doing business, whilst Arsenal, as usual, just talk, though it seems that Sanogo(who) is in the bag.

I heard on the grapevine that he has his eye on a Luton player and is prepared to lash out a lot of money just as the transfer window closes. The price is 20/ 30 quid which is all the board will really let him have because they need their bonuses Increasing. Sam o same o then!!!

Wenger could do a lot worse than sign Fulham's goalie - with a decent keeper they would have won 2 or 3 trophies in the past few years.

Wenger NEVER reveals who he is after as he makes his approach right at the end of the transfer window to get the cheapest price possible, like he did for Arshaven,..... and what value that 12m was. !! Like usual "war chests" are mentioned at season ticket sale time, and then some unknown cheap kid or old over the top free player will sign. It is time the Arsenal fans and most of all board realise that this kind of transfer policy and the meagre wage structure do not attract World Class stars and those players at Arsenal who do shine a little, leave to earn medals at more ambitious clubs. 4th in the PL is hardly inspiring.

I am beginning to imagine that Wenger wants to shake off a few clubs that have mastered the art of using him as a scout.

They are all rumours Wenger will keep his cards close to his chest like he did with Carzola and Giroud as he won't want Chelsea an Man City to hijack his transfer targets.

I am I the only one that sees this excuse of we don't spend money but finish 4th as the perfect excuse to under achieve and still look good.? As they say to whom much is given much is expected. The only way wenger can prove to the world that he's not past it is to spend the money, I think he has proven he can't do it without money (9yrs)

I like his kitty, I think he might use it to rebuilt his home or buy a new car.

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