Celtic prepare to break transfer record for Matt O'Riley replacement as move for one key target collapses

Celtic are preparing to break their transfer record to secure Matt O'Riley's replacement following the arrival of Barcelona left-back Alex Valle on a season-long loan.

Valle, 20, who spent last season on loan at Levante after a spell at Andorra, became Celtic's first new outfield signing of the summer when his arrival was confirmed on Wednesday morning.

Now the Parkhead club are ramping up attempts to land Augsburg midfielder Arne Engels ahead of Friday's transfer deadline amid reports that a £10million offer has been submitted for the Belgium Under-21 international.

Celtic are locked in talks with the Bundesliga side over a move for the highly-rated 20-year-old as they look to fill the void left by O'Riley's £26million departure to Brighton on Monday.

Should Celtic land Engels for the quoted £10million fee then it would set a new transfer record for the club, exceeding the £9million spent signing Odsonne Edouard from PSG in 2018.

The new offer follows on from bids of £6.5million and £9million, which were both rejected. It remains to be seen whether Augsburg can be convinced to sell their key playmaker with Sky Sports claiming they may hold out for even more.

Arne Engels of FC Augsburg is a transfer target for Celtic. (Photo by Alexander Hassenstein/Getty Images) | Getty Images

Augsburg manager Jess Thorup cast doubt over the potential transfer when he revealed he was expecting the player to remain at the club beyond the transfer deadline.

He told Sky Germany: "I think he will be in our squad for the next game [against Heidenheim on Sunday]. I heard about the rumours. I don't know what will happen in the last couple of days."

However, Celtic are determined to get their man to give Brendan Rodgers the quality addition he has demanded as the club prepares to embark on another Champions League campaign.

However, another key target now appears unlikely to move to Parkhead amid reports that a move for Los Angeles attacking midfielder Mateusz Bogusz has collapsed. Celtic were reported to have made a formal bid at the start of the week but the clubs are said to have been too far apart on the valuation for the 23-year-old, who earned his first call up to the Poland national side this week.

Celtic will now focus their attention on Engels while moving onto other targets as they look to add two midfielders before Friday's 11pm deadine. Dundee midfielder Luke McCowan is considered a possible option, with Hibs also showing an interest in the 26-year-old Dens Park captain.

Celtic also remain firmly in the hunt for Sheffield United centre-back Auston Trusty after reportedly submitting an improved offer of £5.5million for the US international after seeing an initial £5million bid turned down earlier in the week.