Arsenal face strong competition from Brighton as they look to hold on to winger Reiss Nelson.
The Premier League leaders have opened talks over a new contract with the 23-year-old, who is a free agent in the summer, and were hopeful of an agreement but his pathway to Brighton's first team may be clearer.
Nelson has scored three goals in his four Premier League appearances this season and is keen to kick on after two loan spells away at Hoffenheim and Feyenoord.
He had further interest from abroad but is understood to be attracted by staying in the Premier League with Brighton.