Balogun is out of contract at Arsenal at the end of the season and has been frustrated by his lack of game time under Mikel Arteta.
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Newcastle held talks with Arsenal in the summer over bringing in Holding on loan, with the imminent arrival of Gabriel set to limit Holding’s chances of first-team action at the Emirates.
The substitute was given his marching orders by referee Chris Kavanagh for a tackle on Sean Longstaff at the end of the 90 minutes, but the card was downgraded to a yellow after the pitchside monitor was used
The Gunners will enter the match off the back of three straight Premier League victories, but Newcastle are winless in their last six matches in all competitions during a disappointing run.
The teenage striker has scored twice since making his first-team debut at the end of October and the manager is keen to keep him
He said the German midfielder would be allowed to leave if they received a good offer.
The Gunners have beaten Chelsea and Brighton & Hove Albion in their last two games to move into 13th position in the table, but West Brom remain in 19th, having collected just eight points from 16 matches.
The Spaniard said this was because they have a large squad and extra players in certain positions.
A penalty from Alexandre Lacazette and goals from Granit Xhaka and Bukayo Saka helped a youthful Arsenal side seal their first league win in nearly two months.
Mikel Arteta led Arsenal to win the FA Cup the last time they faced Chelsea in August, but less than five months on the Spaniard was under intense pressure after a run of one win in 10 league games.
The Gunners, who are down in 15th spot in the table, will be searching for their first league victory since the start of November, while Chelsea will be looking to make it back-to-back wins in England’s top flight, having comfortably dispatched West Ham United at Stamford Bridge on Monday night.
City, who have won the trophy for the last three seasons, went in front in the third minute with a header from Brazilian striker Gabriel Jesus.
The hosts looked the more confident of the two sides in the opening exchanges, and were rewarded as Dominic Calvert-Lewin headed Iwobi’s cross off Holding and into the bottom right-hand corner of Bernd Leno’s net.
The result meant the Gunners stretched their winless league run to six games after having centre back Gabriel sent off.
With 13 points from 12 Premier League games, Arsenal are off to their worst start to a campaign in almost 40 years and the pressure is building on Arteta, who was given the manager’s job last December after winning two Premier League titles, an FA Cup and two League Cups under Guardiola at City.
Captain Pierre-Emerick Aubameyang inadvertently headed into his own net from a corner at Emirates Stadium after Granit Xhaka had been shown a straight red card for violent conduct.
The Amazon Prime documentary: “All or Nothing: Tottenham Hotspur,” followed the club during the 2019-20 season, during which Mourinho replaced Mauricio Pochettino as Spurs manager, before guiding them to a sixth-placed Premier League finish.
The Gunners have won just one of their last five top-flight matches and enter the weekend’s fixtures down in 12th, one point behind opponents Wolves.
The Ivory Coast winger kept his place in Arsenal’s side despite being criticised by manager Mikel Arteta following his red card in the goalless draw at Leeds on Sunday.
The Daily Mail claimed Arsenal is hopeful Saka has escaped with just bruising to his knee after being forced off injured against Leeds.