Football London claims that Arsenal is looking to sell Folarin Balogun for at least £10 million.
The 19-year-old has made it clear that he will not be signing a new Arsenal contract as he sees no clear path to the first team at the Emirates.
He has entered the final year of his current deal at the club and he will likely be leaving them this summer.
The threat of losing him for nothing hasn’t made Arsenal reduce their asking price for him.
The Gunners rejected a bid of around £3 million from Sheffield United and stunned the Blades by asking them to pay an eight-figure sum for a player who is yet to play for the club’s first team.
Arsenal knows that if he joins another English team next summer for free, they will be entitled to a compensation fee at the tribunal that will be more than what Sheffield United has offered them.
But they also risk losing him for a significantly lower fee should he decide to move to a team abroad as he has interest from Germany and Italy.
Folarin cannot get into the current Arsenal first team with the likes of Eddie Nketiah and Gabriel Marinelli also struggling for regular playing time.