Valencia striker Paco Alcacer is set to sign a new deal with the Spanish club, putting to an end any hopes Arsenal and Chelsea have of capturing the young goalscoring sensation, as reported by the Daily Star.

The 21 year old striker has emerged as a target for both London clubs in recent weeks, having started the new season in blistering form for Los Che.

Backed by Billionaire Peter Lim’s funds, however, the Spanish club were never likely to let Alcacer leave without something of a battle, and they are now set to spurn interest from the Premier League clubs by securing him to a new contract.

Reports in Spain had previously linked the two rivals with a move for the striker, with a clause in his deal allowing the player to leave Valencia for only £14.5 million.

Valued at well less than his true price, both clubs saw a bargain afoot, but Valencia are now set to stop that by agreeing new terms with the player.

There had been previous suggestions that the buyout clause would be raised to a more realistic £25 million.

Chelsea and Arsenal are ready to do battle for the signature of Valencia’s 21 year old Spanish starlet Paco Alcacer, as reported by the Daily Express.

A good start to the La Liga season for Valencia has seen Alcacer develop an increasingly respected reputation, and he earned a call up to Vicente del Bosque’s national side as a result.

The striker then boosted his reputation even further by scoring on his debut for the former World champions, putting Macedonia to the sword on Monday night.

There have been interests from other top sides in Europe before, with Barcelona looking to sign Alcacer in 2011, but he decided to stay at Valencia, and judging by the opportunities he’s been granted, this was the best decision.

Reports in Spain now suggest that Arsenal and Chelsea are both looking to bring him in in a bargain January move.

His current contract includes a clause which allows him to move for only £14.5 million, which would allow either club to sign him for less than his true value.

Valencia are hoping to rectify this by committing him to new terms which would see his buy out clause rise to £25 million.