Zidane is making frantic efforts to lure Spanish international De Gea to Real Madrid just as Costa prepares a return to Atletico Madrid.
David de Gea
Real Madrid are planning a bid of around £46 million for Manchester United goalkeeper David de Gea, according to The Sun.
The Spanish giants have long been admirers of the Spain international and are hopeful they can finally get their man before the summer transfer window shuts.
Blancos boss Zinedine Zidane has decided against signing a big-money outfield player following an encouraging pre-season and will instead now turn his attention to De Gea.
Inter have made an approach to take Arsenal defender Shkodran Mustafi on a season-long loan deal, according to GIanlucaDiMarzio.com.
The Serie A giants are looking to bolster their defensive ranks and have turned to the Germany international after failing to complete a deal for Manchester City's Eliaquim Mangala.
Arsenal are reluctant to let Mustafi leave, however, having spent around £35 million on him around a year ago.
Chelsea are bracing themselves to accept an offer for Diego Costa far below what they hoped to recoup for the striker, according to the Sun.
Costa has been declared surplus to requirements at Stamford Bridge, and has been linked with a return to Atletico Madrid.
But the Spanish side will only pay up to £30 million, considerably lower than the £50m price tag Chelsea had placed on their 2016-17 top scorer - and such is the Blues' desperation to sell that they are likely to relent.
Arsenal are ready to make their move for Julian Draxler, with PSG wanting around £32 million to complete a deal this summer, according to The Times .
The German winger joined the French side just seven months ago for £35.5m and is being chased by the likes of Borussia Dortmund and Inter Milan as well.