Arsenal have reportedly pulled out of negotiations for Sassuolo midfielder Manuel Locatelli.
The 23-year-old has been impressive for Italy at the European Championships, which has caught the eye of several European clubs.
The Gunners made contact with Sassuolo towards the back end of June, but they have yet to make any progress over a deal.
Sassuolo CEO Giovanni Carnevali has recently flirted with the Gunners interest in Locatelli while claiming that Juventus have yet to bid.
However, according to Tuttosport, the north London club are no longer in the running to sign the former AC Milan graduate.
Locatelli has the clear preference to join Juventus, where he can play Champions League football and win regular trophies.
The Bianconeri can’t afford to negotiate a straight-cash deal. They are likely to propose a swap move or payment in instalments.
Locatelli is valued at around €40m by Sassuolo. They are unwilling to reduce the fee after his impressive displays at Euro 2020.