Brazilian World Cup goalkeeper Marcos is considering a possible £2.5-million-pounds move to English champions Arsenal.
Gunners boss Arsene Wenger confirmed that there had been preliminary contact but said reports that the deal was virtually done were premature.
"We haven't signed anybody and we have not signed Marcos. All news of signings is premature," Wenger told Arsenal.com.
"There are talks and Marcos is one of the players we are interested in, but it is much too early. The decision has not been made and negotiations haven't really started."
Marcos, 29, could prove an ideal long-term replacement for England keeper David Seaman who will be 40 at the start of next season and has been pilloried for a string of blunders for both club and country in recent months.
According to media reports, Arsenal are ready to offer him a four-and-a-half year contract.
"I heard that Manchester United, Manchester City and Deportivo La Coruna wanted me, but the only offer to Palmeiras came from Arsenal," the player told the London Evening Standard.
There had been speculation that Marcos wanted to delay his career in England until the summer because of family commitments but it now looks as if he will be at Highbury this season.
"It is possible I will be here by the end of the month. There are many formalities to be sorted out first but, yes, I could be an Arsenal player this season," he said.
"I will need time to adapt. I am hopeful the transfer will be sorted out before I go back to Brazil tonight.
"This will be a very exciting challenge for me. I was not expecting to be transferred in my career."
Marcos could solve Wenger's goalkeeping dilemma.
Swedish-Egyptian Rami Shaaban, brought in as cover for Seaman in the summer, is out for the rest of the season after breaking his leg in training while Stuart Taylor is of action after breaking a finger.
That leaves only 18-year-old Craig Holloway as cover for Seaman who has been capped 75 times by England.