Arsenal have finally made a bid for transfer target French international Karim Benzema, but Real Madrid believe the north London club's offer is significantly below their own valuation, according to Spanish outlet Don Balon.
With Alexis Sanchez's future still remaining uncertain at the Emirates, Benezma is seen as the ideal replacement for the Chilean as Arsene Wenger has continually been linked with his compatriot over the last few months about a proposed transfer.
However, the striker is a source of frustration at the Santiago Bernabeu and it is rumoured that he annoys Real president Florentino Perez, which may allow Wenger to exploit the situation and get a deal completed prior to the end of the season, if not during the winter transfer window.
If a deal can be completed, this will then allow Sanchez to leave next month and the Gunners will then be able to recoup some of the £35m they paid in 2014, instead of allowing the Barcelona forward to leave for nothing in the summer.
Currently, Arsenal find themselves in a unique position as they are the only club that have reportedly made a firm offer in signing Benzema, but they will need to drastically improve their initial bid to force through a quick deal as the valuation of the player by both clubs are massively apart.
It is believed that Real feel insulted by Arsenal's £36m tabled offer. However, this is how negotiations start and Los Blancos' officials appreciate that Wenger's side have the wealth to increase their initial bid if they really desire the talented striker to improve their squad for the challenges that remain for the rest of this campaign.