Atletico have already expressed an interest in signing the midfielder, who announced himself on the world stage with sensational goal against Liverpool in the Carling Cup.
Related ArticlesWenger not worried about Kroenke takeoverArsenal lose Gael Clichy to injuryGibbs wants to prove Arsenal worth firstKroenke increases Arsenal stake to 29.6 per centEmmanuel Eboue: I would like to play for PSGAtletico president, Enrique Cerezo, said: "He has entered into our plans for next season. He is a player that interests us. The decision rests with the kid because he is free in June."
Now Merida's agent, Joseba Diaz, has added to the uncertainty surrounding Merida's future, and is quoted in the Daily Mail as saying: "We have an offer from Arsenal but Fran Merida has an 'illness', for want of a better word, and that is Atletico Madrid and you can't do anything about that."
Merida, on the other hand, has expressed his content at Arsenal and manager Arsene Wenger will do all he can do pin the promising player down to a long-term deal.
Merida said: 'At the moment I am talking to the club so I don't know what is going to happen.
'I am really happy here so hopefully everything is going to be ok. We are going to sit down and talk about (a new contract). I am really happy in London."