Arsenal have been aiming to pay closer to €25 million for Real Sociedad midfielder Mikel Merino due to his contract expiring next summer.
However, his club are holding out for €35m, according to the Independent.
The Gunners would also prefer to spread any agreed valuation over three years, but the La Liga club want much more of the fee up front.
Arsenal manager Mikel Arteta has already been planning the different ways he can use the Spanish star, but the club are anticipating long hours negotiating with Sociedad.
The Spanish club do not want to lose such a key player and are unwilling to allow him to leave for cheap even if they eventually sanction his exit.
Arsenal have been enduring slow negotiations over a fee and the payment structure, and they may need to move closer to the asking price to have a chance of landing the Spain international.
Martin Zubimendi’s decision to turn down Liverpool is expected to boost the Gunners’ pursuit of the 28-year-old, as Sociedad would not have wanted to lose two midfielders in a single window.
However, things may not prove straightforward with both clubs still some distance apart over the structure and fee.
While Merino has reportedly agreed personal terms with Arsenal, negotiations between the clubs could go to the very end of the summer transfer window.
Landing the Spaniard would be huge for Arsenal as they could do with his versatility and quality in the middle of the park, but it will require work to get a deal done.
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