Arsene Wenger believes first £200m footballer is just around the corner following Paul Pogba's Manchester United move

Arsene Wenger believes that the first £200million footballer is just around the corner.

But the Arsenal manager is adamant the Gunners can still compete with Europe’s elite despite the astronomical spending of his rivals.

Manchester United smashed the world record transfer fee with their swoop for Paul Pogba from Juventus — a deal that will cost close to £100m.

In contrast, the Gunners’ most expensive signing so far this summer is Granit Xhaka, who cost £34m, though they are closing in on a £30m swoop for Valencia defender Shkodran Mustafi.

In relative terms, the Gunners have shown prudence in the transfer market, their record signing being Mesut Ozil who cost £42.5m from Real Madrid.

Wenger fears the extravagant spending will only continue to soar, saying: ‘It will not be long before we see a £150m or £200m signing.

‘Since I started in the game I said, at some stage, it has to stop but as long as football develops and becomes more popular you would say that more money will come in.

'What is interesting to see is that in every single local business you just struggle to survive.

'Or you have a world business and the money comes in — Google, Facebook or football or any other sport, they are worldwide and you cannot set any other limitations in the income.’

Wenger, though, insists that Arsenal can still mix it with the elite — and has even suggested this season could be the best to mount a serious title challenge.

‘Manchester United are the richest club in the world along with Real Madrid,’ said Wenger.

‘Not many people can compete with their finances but that doesn’t make the difference because at the moment on the pitch we can compete. That is the most important thing. It’s not a financial competition, football is a performance competition.

‘It is becoming more like a financial competition but that does not always reflect the Premier League table.

‘We have to make sure that is the case. Leicester showed that last year. Never before have there been so many teams who could win the title.

‘But that can make it easier as well because it means that everyone can drop points.

‘There cannot be just one team that walks away and nobody can catch. The hope will be alive for everyone in the Premier League longer than ever. On that front, if you are consistent it could be easier.’