Newcastle United rejected an offer from Arsenal to sign the Brazilian Bruno Guimarães, the team's player, during the ongoing summer transfer window.
The current Premier League champion is conducting direct negotiations with Newcastle regarding a deal for their captain. Arsenal is internally discussing the possibility of submitting an improved offer, according to Sky Sports.
The 28-year-old player informed Newcastle officials last month of his desire to move to Arsenal.
Newcastle wants to keep their captain, as he has two years remaining on his contract plus an option to extend for a third year.
The player's desire to leave comes amid major changes at Newcastle, following the departure of manager Eddie Howe, along with the exit of several key team members such as Anthony Gordon and Sandro Tonali.
In return, Newcastle insists on receiving a large financial compensation in exchange for letting go of their star, as reports indicated that the club will not consider selling the player for less than £80 million.