Monaco reportedly had a verbal proposal for the United States international rejected following their Emirates Cup pre-season friendly against Arsenal at the start of the month.
The Athletic now reports that a written offer has also been turned down by the Gunners, although details of the proposal have not been disclosed.
Negotiations are still ongoing between both clubs, with Monaco keen to land Balogun’s signature after his goalscoring exploits in the French top flight last term.
The 22-year-old striker netted 21 times in 37 Ligue 1 outings – a goalscoring return only bettered by Kylian Mbappe, Alexandre Lacazzette and Jonathan David.
Despite his performances in France, Arsenal are open to parting ways with Balogun this summer, with Gabriel Jesus and Eddie Nketiah ahead of him in the striking department.
Kai Havertz’s arrival at the Emirates Stadium pushes the former Middlesbrough loanee further down the pecking order, with the German able to slot into the centre-forward role when needed.
Monaco are expected to return with an improved offer. Their sporting director, Thiago Scuro, reportedly has a cordial relationship with Edu, his counterpart at Arsenal, which could be pivotal in striking a deal.
They are keen on signing a striker in light of Breel Embolo’s recent anterior cruciate ligament injury, which threatens to rule him out for most of the season.
They are also considering a move for Chelsea target Elye Wahi, but Balogun is their number one choice, with the player open to an Arsenal exit this summer.
Balogun has refused to embark on another loan spell, forcing Arsenal to scour the market for suitors to sign him permanently. But their asking price could also pose a problem for interested parties.
Serie A duo Inter Milan and AC Milan have also sounded out interest in the American striker. But neither have acted on their interest, leaving Monaco in pole position to secure his services.
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