Arsenal have cooled their interest in Atletico Madrid forward Joao Felix due to the Spanish side's asking price, according to reports.
The Portugal international could be on his way out of the Civitas Metropolitano in the January transfer window.
Atletico executive Miguel Angel Gil recently conceded that the Spanish outfit may look to cash in on the former Benfica star.
"He is the biggest investment the club has ever made and I think he is at the highest level in the world in terms of talent," he told TVE.
"But for reasons that are not worth going into now - the relationship with the coach, the number of minutes he is playing, his motivation - the reasonable thing is that if there is an offer that is good for the player and the club, that we at least analyse it. I would love him to continue, but that is not the player's idea."
But according to talkSPORT, Arsenal have reservations about meeting the loan fee Atletico are demanding for the attacker, who is valued at £43m by Transfermarkt.
The La Liga outfit are holding out for £8m to allow Felix to leave the club on a temporary basis until the summer.
The Gunners, together with fellow suitors Chelsea and Manchester United, are hesitant to meet that demand.
Arsenal are in the market for a new forward after Gabriel Jesus was ruled out of action for several weeks with a knee injury.
However, the north Londoners may opt to stick with Eddie Nketiah during Jesus' absence.
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