Real Madrid president Florentino Perez has told Arsenal it would be a waste of time bidding £25.5million for Gonzalo Higuain, according to the Metro.
The Argentina striker is also being tracked by Serie A Champions Juventus, though both clubs have reportedly been told they will need to pay more than originally expected.
A £20million fee was originally spoken of, with that amount rising to £25.5million though Perez insists that both figures are wide of the mark.
Meanwhile, Cesc Fabregas has played down talk of a return to the Premier League, insisting that he is determined for success at the Nou Camp.
The Barcelona midfielder has been heavily linked with a move to back to England, with Champions Manchester United seemingly favourites to land the player.
Arsenal are also thought to have entered the race as they have first refusal on the Spanish international, who clinched his first La Liga title last season.
Elsewhere, Gunners midfielder Abou Diaby will beginning running in a few weeks, as he continues his rehabilitation following a serious knee ligament injury.
The 27 year old made just eleven Premier League appearances last season, spending the final three months of the campaign in in the treatment room.
