Arsenal has made a third proposal of £105 million for West Ham and England player Declan Rice.
Manchester City, who had a £90 million proposal for the 24-year-old rejected on Tuesday, will not match Arsenal’s offer.
Arsenal has already had two proposals rejected because they fell short of West Ham’s £100 million asking price.
However, it is understood that the Hammers do not believe the latest bid’s structure is correct.
Rice’s current contract at the London Stadium expires in 2024, but he has the option of extending it for another year until the summer of 2025.
If Arsenal’s initial proposal of £100 million plus £5 million in add-ons is successful, the initial sum will equal the British record paid by Manchester City for midfielder Jack Grealish.
England midfielder Jude Bellingham joined Real Madrid earlier this month for an initial fee of £88.5 million, with the deal potentially increasing to £115 million if add-ons are implemented.