Arsenal have turned down a notional offer of £50 million for Chilean forward Alexis Sanchez from Premier League rivals Manchester City, the London club said on Tuesday.
The 28-year-old, who scored 24 league goals last season, is out of contract next summer and wants to play for City manager Pep Guardiola.
Arsenal have rebuffed all approaches for Sanchez, and would like City's Raheem Sterling as part of any deal before Thursday's transfer deadline.
England forward Sterling, 22, has featured in all three of City's games so far this season.
However he is not guaranteed a starting role at Etihad Stadium following the summer arrival of Bernardo Silva from Monaco.
It has been reported Sterling would be interested in moving back to his home city of London should he become part of the Sanchez deal.