Arsenal identify fellow Premier League winger as a Wilfried Zaha alternative
The Gunners' opening bid of £40m for Zaha was rejected by Palace, who considered the offer derisory.
The south London side believe their prized asset is worth double that amount and are adamant that they have no financial need to sell a player with four years remaining on his deal at Selhurst Park.
And with Arsenal's transfer budget rumoured to be £45m, Unai Emery may have to turn his attention back to Fraser.
The Bournemouth winger scored seven goals and provided 11 assists in 2018/19, and was linked with Arsenal towards the end of last season.
The Scotland international is out of contract in 12 months' time and will therefore be available for £20m this summer.