Arsenal are no longer in the running to secure Belgium international Yannick Carrasco's signature as they look to pursue other transfer targets to help them return to the Champions League.
The Gunners finished just outside of the top four and have set their sights on returning to Europe's elite and have been interested in Carrasco to help them bring some Champions League quality to their squad.
The winger, who currently plays for Dalian Yifang, has been heavily linked with a move to north London after the 25-year-old stated he was ready to leave China after being there for a year.
However, according to the Daily Star, the deal looks to be off the table as acquiring the former Atlético winger would require a huge chunk of their limited transfer budget, something the Gunners are reluctant to do.
With Carrasco out of the picture, Arsenal can turn their attention to signing a centre back and Saint-Etienne star William Saliba has been heavily touted for a move to the Emirates Stadium.
The Ligue 1 outfit have slapped a £20m price tag for the Frenchman but have demanded he be loaned back for the 2019/20 season. The Gunners are still confident they can land the 18-year-old and keep him for the upcoming campaign.
The Premier League club are also interested in Crystal Palace's winger Wilfried Zaha but with his price floating around the £60m to £80m mark, they would need to offload some players, with Mesut Özil, Calum Chambers and Carl Jenkinson all linked with exits in order to raise funds for transfers.