Arsenal’s opening bid for Bruno Guimaraes has been rejected by Newcastle.
The Premier League champions are now in direct talks with Newcastle over a deal for their captain.
Guimaraes is in Spain to report back for their pre-season training camp in La Manga.
The 28-year-old told Newcastle bosses last month he wants to join Arsenal this summer.
Newcastle want their captain to stay and he has two years left on his contract plus a club-held option for a third.
Arsenal are now discussing internally whether to go back in with an improved offer.
Guimaraes, who joined the Magpies in 2022 from Lyon for £40m, has made 195 appearances for Newcastle, scoring 31 goals.
Earlier on Monday, Guimaraes was on his way to meet up with Newcastle United at their pre-season camp in Spain.
He had left Brazil on Sunday, when it was widely reported he was expected to be arriving in La Manga.
However, Guimaraes is arriving at the Spain training camp in agreement with the club and is now set to join the group.
Last week, he called now departed head coach Eddie Howe the “king of this club” following his exit from St James’ Park.
Howe’s resignation came amid Arsenal’s interest in Guimaraes, who has praised his former boss.
In an Instagram post, Guimaraes wrote the words over a picture of Howe: “King of this club!! Thanks for everything you’ve done for us.
“I loved enjoying our time together. Thanks for making me a better player and person! No words I can say will really say how much I enjoyed being our player. Wish you all the very best in your future, gaffer.”