Arsenal has agreed to a deal with Villarreal involving Gabriel Paulista and Joel Campbell.

Gabriel, a 24-year-old central defender from Brazil, will go to Arsenal for £13.5 million.

Campbell will go to Villareal on loan from the Gunners for the remainder of the season.

Campbell was expected to have a breakthrough campaign for Arsenal this season. He had an excellent loan spell at Olympiacos and a very strong World Cup, but has made only 10 appearances this year and has not scored a goal.

Ian Ayre has left the door open for Steven Gerrard to return on loan to Liverpool once he moves to the Los Angeles Galaxy.

Principal owner, John W Henry, and manager Brendan Rodgers have both said there will always be a role for the midfielder at the club whenever he decides to return but Ayre has not ruled out the possibility of Gerrard returning as a player.

“I’ve said openly to Steven and his representatives, as have Brendan and the owners, that we see Steven as part of the family,” he told Liverpool radio station City Talk. “The fact that he’s leaving at the end of the season doesn’t mean it’s the last we’ll see of him at Liverpool. What that means, the details aren’t known yet, but we will keep a regular dialogue with him and I hope we will see him here again in the long term.”

Asked if that could mean a return on loan next January, Ayre said: “It’s conceivable. It happens a lot in MLS and it’s something we talked to Steven and his representatives about. You can’t have someone who has so much of the club’s DNA in them and just expect that it will go away.”

Arsenal will send Yaya Sanogo on a loan move to Crystal Palace.

Arsene Wenger revealed earlier this month he was keen to send Sanogo out on loan to another Premier League club so that the striker can play regular first-team football.

Bordeaux was keen to take the former Auxerre 21-year-old back to Ligue 1, but Wenger was keen to keep the 21-year-old in England.

"He will go out on loan," Wenger said earlier in January. "My option is preferably in England."

Pierre Hojbjerg will spend the rest of the season on loan at Augsburg after signing a contract extension with Bayern Munich.

The 19-year-old has already earned five Denmark caps, but has yet to fully establish himself with the defending Bundesliga champions.

Hojbjerg has made 13 appearances in all competitions for Bayern this season, starting six times for the Bavarians.

Inter Milan have agreed a deal with Bayern Munich to sign winger Xherdan Shaqiri.

Shaqiri joined Bayern from Basel in 2012 and won two Bundesliga titles and the 2013 Champions League.

Shaqiri will go to Inter on loan until the end of the season before completing a £12 million deal.

AC Milan are attempting to add Mario Suárez of Atlético Madrid on a loan.

Suárez is a 27-year-old defensive midfielder.

Atleti wants the deal to be permanent. Arsenal is also interested in Suárez.

Manchester City and Schalke continue to discuss a deal involving Matija Nastasic.

The 21-year-old center back has fallen out of City's plans this season.

The German side are looking for an initial loan deal with a view to a permanent €10 million (£8 million) move in the summer but City’s Financial Fair Play restrictions mean that they are operating with a relatively limited budget of around €16.5 million (£13 million) and they know that they need to sell in order to buy in January.

Schalke boss Roberto Di Matteo confirmed on Sunday that he is trying to sign Nastasic, telling attendees of a fan event: “Yes, we want him, but we aren't the only ones.

“Nastasic is an interesting player, very talented and, despite his young age, already experienced but he still is a Manchester City player."

AC Milan is also interested in Nastasic.

Inter Milan and Arsenal have agreed upon a loan deal involving Lukas Podolski.

Podolski will undergo a medical on Saturday before signing, initially on a loan deal until the end of the season, over the weekend.

According to La Gazzetta, Inter's sporting director Piero Ausilio thrashed out terms with the Gunners earlier on Friday, making a bid which met their demands after initial derision from Arsene Wenger.

Wenger confirmed on Friday that Inter had improved their offer and Podolski was now likely to head to the San Siro.