Milan have blown Arsenal out of the water after making Mathieu Flamini a £60,000-aweek offer - AFTER tax.

Arsene Wenger, who has given Flamini until tomorrow to sign or leave, fears he is losing the battle to keep the Frenchman and his fellow midfielder Alexander Hleb in what would be a devastating double loss for Arsenal.

Gunners boss Wenger has insisted that Arsenal will not up their five-year contract offer to Flamini, which is worth £55,000 a week, while Juventus have also made him an offer worth around £60,000 a week.

But neither of those deals compare to Milan's offer because they would be taxed while Flamini's deal at the San Siro would be spread over five years to make sure he stays loyal.

Flamini, 24, is now considering his options and is still keen on Juve because it has been a long-term dream to play for the Turin club and they can also offer Champions League football.

Milan coach Carlo Ancelotti said: "He's a really good player."