Arsenal’s hierarchy have refused to sign midfielder Arthur Melo this month after learning of Juventus’ transfer demands.
The Gunners were initially eyeing a six-month loan deal for the Brazil international, but the Bianconeri rejected their advances.
After a few weeks of negotiations, technical director Edu Gaspar compromised over an 18-month loan with an option to buy for €40m.
However, the Gunners board have vetoed Edu’s decision, according to David Ornstein. They are unlikely to change their stance.
The north London giants may now look at potential alternatives to the 25-year-old, who appears set to stay with the Bianconeri.
Lyon’s Bruno Guimaraes is another top transfer target for the Gunners, but the French outfit want the €45m fee paid in one payment.