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Arsenal are understood to have failed with a bid of around £26m to pursue Dani Ceballos on a permanent basis from Real Madrid.
The Spain international joined the Gunners on a season-long loan from Los Blancos over the summer after being told that his gametime would be limited under manager Zinedine Zidane.
Ceballos has since impressed for the Gunners with one goal and two assists from 12 appearances and it appears that the club are eager to push through a permanent deal.
According to El Desmarque, the north London giants made an offer of £26m for the former Real Betis graduate but the package was knocked back by Zidane's side.
However, they are not far off from meeting the demands of the Spanish heavyweights, considering president Florentino Perez is willing to accept offers in excess of £30m.
Arsenal boss Unai Emery has been reluctant to play Mesut Ozil this term despite the club's lack of creativity and reports have emerged that the Gunners may consider a mid-season move for Isco from Real Madrid.
Written by Sri Aswin
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