Everton had identified the 27-year-old, who scored 17 goals in La Liga last season, to provide support for Romelu Lukaku.
The Toffees were closing in on a deal - but Arsenal have now declared a late interest in the striker known as Lucas.
Everton are still hopeful of a deal but reports in Spain suggest Arsenal are strong favourites to sign the player.
Source:http://www.bbc.com/sport/football/
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