Arsene Wenger wants to sign a top striker but the Arsenal manager appears short of options after a double blow to his hopes.
Napoli are believed to have agreed a £31.8million deal for Higuain, which could rise by another two and a half million with add-ons.
Arsenal thought they had sealed a £23m transfer for the 25-year-old last month only for Real to then raise the asking price.
Worryingly for Wenger, Real will use the money from the sale to help secure a deal for Suarez.
They had been unwilling to pay £40m — the fee which Liverpool are believed to be prepared to take — but now have more funds to play with.
Wenger now faces a battle to try and secure the striker he needs. Manchester United insist Wayne Rooney is not for sale and, even if they were to relent, Arsenal would probably lose out to Chelsea, who have already had a bid turned down.
Another target, Bernard, is refusing to talk about a £21m move from Atletico Mineiro to Arsenal, although sources in France suggest he will be in London on Friday for a medical.
He is due to play in the second leg of the Copa Libertadores tomorrow night against Olimpia with his team trying to overturn a 2-0 deficit.
The Brazilian playmaker said: “In a week as important as this, I do not want to talk about it. My future at Atletico from Thursday is in the hands of the board.”
Source:standard.co.uk