Arsenal have signed Chelsea forward Raheem Sterling on loan for the rest of the season, the clubs confirmed Friday.

Sterling has three years remaining on his current contract at Chelsea but had been deemed surplus to requirements at Stamford Bridge. After previously being linked with Man United, Sterling completed his move to Arsenal just before the close of the summer transfer window.

The deal for Sterling came as ESPN reported that Chelsea had agreed to sign Man United winger Jadon Sancho on loan.

Arsenal boss Mikel Arteta distanced the club from a move from Sterling last week despite speaking positively about his character after the pair worked together for three years at Manchester City.

However, Arsenal have been open to signing an attacking player throughout the window and are discussing their options, having also been linked with a late move for Bayern Munich winger Kingsley Coman.

The move for Sterling came after Arsenal sent fellow winger Reiss Nelson on loan to Fulham for the season, with the Gunners of the view that Sterling would be an upgrade on the 24-year-old.

Also on Friday, Arsenal announced the signing of Bournemouth goalkeeper Neto on a season-long loan deal.

The 35-year-old has been identified by Arsenal as a backup for first-choice goalkeeper David Raya, with his arrival enabling Aaron Ramsdale to complete his move to Southampton.

As ESPN reported on Thursday, Ramsdale has agreed a deal worth up to £25 million ($33m) including add-ons.