The Brazilian has not been too impressive on his second stint in Germany with Wolfsburg currently in 16th place. Whilst 3rd from bottom in the Bundesliga requires a play-off and not automatic demotion, the playmaker does look to be heading out of the door at the end of the season regardless of their finishing position.
After a season at Juventus from 2009 to 2010, the former Werder Bremen midfielder returned to the Bundesliga in the summer of 2010 thus far scoring six goals in just over 20 appearances and Arsenal looked to have been first to add him to the wish list.
A drop in value for the player also means that he would be a bargain at around the £6m mark, almost half of what Wolfsburg paid Juventus in 2010. With Chelsea now also in the mix, Diego’s price will escalate meaning Wolfsburg could get nearer the price paid but Wenger will not be keen paying over the odds for a player, who despite having talent, has been known to disobey instructions.
Chelsea are looking to add younger legs to their ageing midfield whilst Arsenal will only seriously look at Diego should there be any result from the somewhat tedious Fabregas/Barcelona situation.