Arsenal boss Arsene Wenger has issued an ultimatum to his underperforming team – finish in the top four this season or it will be ‘all change in the summer’.

Wenger held a meeting with all first team players and coaches to tell them if a top four spot isn’t achieved at the end of this season there will be upheaval come May.

The long-serving Frenchman – whose team performed dreadfully to lose 3-0 to Manchester City in the final of the Carabao Cup final on Sunday – spoke to his staff after being involved in a board meeting in the aftermath of the defeat on Monday.

A source inside the club told the Islington Gazette newspaper: “Wenger had a board meeting yesterday [Monday] and today [Tuesday] told all first team players and coaches if club isn’t in the Champions League next season it is all change in the summer.”

With the Ivan Gazidis appointments of head of recruitment, Sven Mslintat, former Team Sky’s legal and commercial expert, Huss Fahmy, along with Raul Sanllehi from Barcelona - who is director of football in all but name - Wenger’s power at Arsenal is gradually being removed.

Josh Kroenke – tipped to be a future chairman – has taken up residence in London this month while he conducts a review of the club.

The 37-year-old son of the club’s major shareholder ‘Silent Stan’ has visited London Colney – the club’s training ground and de facto headquarters recently – as well as the Highbury House offices next to the Emirates.

Wenger’s dramatic discussion comes after his side were completely outclassed against Pep Guardiola’s City in the showpiece final.

The teams are due to meet again in the re-arranged Premier League fixture at the Emirates on Thursday – and Kroenke will be eager to judge the mood of the fans in a match which could be pivotal to Arsenal’s chances of finishing in the top four.