Arsenal have reportedly taken a hit in their pursuit of Pedro Neto as Wolves had no intention of selling the winger this summer.
SunSport understands the Gunners are willing to pay up to £35m for the 22-year-old.
But Wolves are looking for at least 50 million pounds, despite signing a ready replacement for 27.5 million pounds for Goncalo Guedes from Valencia.
Arsenal are keen to bring in another wide player as Nicolas Pepe prepares to return to the Ligue 1 to join Nice on loan.
Despite the Wolves valuing Neto at £50m, they allegedly insisted the price was not for sale.
The Portugal international, who has started all three Premier League matches this season, still has five years to land his deal at Molineux.
Commenting on the player, Sky Sports correspondent Dharmesh Sheth confirmed that Arsenal are keen on Neto, but he may struggle to secure his services.
He told GiveMeSport: “Number one, there’s definitely interest in it.
“With regard to Wolves, they have no intention of selling in this transfer window, and their position is that it is not for sale.
“However, the financial talks, it just depends on whether Arsenal make that interest official, to what extent they will test Wolves’ resolve by entering with whatever money they think is right for Pedro Neto.”