Arsenal have turned down an approach from Sheffield United for their striker prospect Folarin Balogun.
The Blades are understood to have offered £3m plus add-ons for the 19 year-old.
But Arsenal want a structured deal worth in the region of 15m, comprising an initial fee for the prolific frontman with further bonuses.
New York-born England Under-19 striker Balogun has less than a year left on his current deal and he is set to leave with no agreement on a new contract.
And Arsenal’s valuation stunned the Blades with Balogun free to sign a pre-contract agreement with a foreign club from January, a scenario that would see the Gunners entitled to only a small compensation fee.
Arsenal turned down a £5m offer from Brentford in January for Balogun, who has also attracted interest from Southampton, Brighton and AC Milan.
The prospect of him being priced out of a move this window has increased the likelihood that he will eventually move abroad amid interest from a number of clubs in Germany.
Balogun is rated as one of the best young attacking talents in England.
He scored 28 goals in 28 appearances for Arsenal’s youth sides during the 2018/19 season and followed that up with another 10 goals in just 15 appearances for the Under-23s last term before the campaign was curtailed in May.
Sheffield United are looking to bolster their attacking options with a new striker in the present transfer window.
Their move for Balogun comes amid links with another young England striker in Liverpool’s Rhian Brewster.
Chris Wilder’s men fired a blank when they began their season on Monday with a 2-0 defeat at home to Wolves.
Arsenal, meanwhile, started with an eye-catching 3-0 win against Fulham but Balogun did not make the substitute bench for the game at Craven Cottage.