Shakhtar Donetsk have rejected Arsenal’s initial offer worth up to €65million (£57million) for Mykhailo Mudryk.
The north London side had offered Shakhtar €40million up front with a further €25million in potential add-ons.
Despite the Ukrainian side turning down the offer, talks will continue between the two teams as they look to find a resolution.
The offer had fallen short of Shahktar’s initial valuation, with the club publicly claiming they expect to receive a fee as high as €100million (£88m) for the 21-year-old winger.
The Athletic have reported that Mudryk is Arsenal’s primary target in the January transfer window.
Mikel Arteta and Edu have been pursuing the 21-year-old winger, who has been watched closely by the club for some time.
Arsenal considered a summer move for the Ukraine international, before pivoting to trying to sign Douglas Luiz when Thomas Partey and Mohamed Elneny were ruled out by injuries.
Mudryk is regarded as one of the most exciting young attacking talents in European football. He has been on the radar of many clubs, and almost moved to Brentford in August during the summer transfer window.
His performances in the Champions Leaguethis season have been particularly eye-catching. He was impressive in Shakhtar’s 4-1 win over RB Leipzig and scored in both games against Celtic.
At club level, he has seven goals and six assists in the league this season.
Arsenal play away to Brighton in their next Premier League match on December 31.
