Inter Milan, runners-up in serie A, are seeking more than £20 million for left-back Federico Dimarco.
Arsenal are interested in a move for the Italian defender.
The Gunners are keen to add a back-up full-back to their ranks after Kieran Tierney’s campaign was cut short by injury.
Nuno Tavares struggled while deputising for the Scotland international.
Mikel Arteta had been keen on recruiting Dimarco to act as cover for Tierney.
But Inter’s £20m price-tag is beyond Arsenal’s budget for a player who would not start week in, week out.
First-choice left-back Tierney underwent knee surgery last month after picking up an injury while on international duty.
When fit the Scotland star is one of the first names on Arteta’s team sheet.
Meanwhile Dimarco himself is yet to establish himself as a regular starter at San Siro – 19 out of his 32 Serie A appearances last season coming from the bench.
The Gunners are gearing up for a busy summer in the transfer market, despite missing out on Champions League football.
Gabriel Jesus is a target, and the Manchester City striker is keen to stay in the Premier League if he leaves the Etihad.
SunSport spoke with the Brazilian’s agents earlier this month, who revealed they see the Prem as the “NBA of football”.
Linked to a switch are the likes of Serge Gnabri, Alvaro Morata and Czech Ducour at Emirates.
