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The North London club were looking as firm favourites to sign the Argentine and Real Madrid forward Gonzalo Higuain until an agreement on the transfer fee came to a stand still.
The main competition for Arsenal in their chase for Higuain was thought likely to come from Juventus but it was soon erased after the Serie A champions completed a move for former Manchester City striker Carlos Tevez.
This seemed to have paved the route for Higuain to finish his switch to the Emirates but it now looks like the deal is on the verge of collapse after the two clubs failed to agree a fee for the player.
Real Madrid are reportedly holding out for £25.5 million which has become a stumble block for the Gunners who are refusing to pay more than £ 21 million. The stand still in talks between the clubs has reportedly led to Arsenal preparing to look at options elsewhere.
The news will come as a shock to Arsenal fans who felt Wenger would have enough funds to seal the deal easily. It now seems the Arsenal management have once again gone back to their old rules, and are refusing to pay an additional £4.5 million for the player.
Arsene Wenger is reportedly ready to turn his attentions to acquiring Manchester United striker Wayne Rooney as he looks for an alternative if Higuain's move does eventually collapse.
Written by Sri Aswin
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