Aston Villa have rejected a formal offer from Arsenal for Ollie Watkins, sources have told ESPN.
Arsenal want to sign a forward before Monday's transfer deadline and are pursuing alternative options after accepting Benjamin Sesko is unlikely to leave Red Bull Leipzig this month.
Sources have told ESPN that Arsenal have now made a formal move for Watkins but their opening bid was dismissed out of hand by Villa.
They are now weighing whether to return with an improved offer after Villa's Champions League group stage finale on Wednesday evening against Celtic.
Watkins is thought to be open to a move to Emirates Stadium, having previously said in 2020: "That's the dream, to play for Arsenal one day."
However, the England international has three years left on his current deal and Villa are in a strong negotiating position to demand a high fee.
Another factor complicating Arsenal's pursuit of Watkins is interest from Al-Nassr in Villa striker Jhon Durán with the Saudi Pro League transfer window set to close on Friday.
Villa would be highly unlikely to consider selling both Duran and Watkins in this window. Duran is valued in the region of £80million and Al-Nassr are said to be weighing up a big-money move for either the 21-year-old or Bayer Leverkusen striker Victor Boniface. Any deal for Duran would make Arsenal's attempt to prise Watkins away in the same window much more difficult.
