Arsenal have seen their first official bid for Mikel Arteta's top transfer target Mikel Merino rejected by Real Sociedad, according to a report.
Merino joined the La Liga outfit at the start of the 2018-19 campaign from Newcastle United for a fee of around £10m after spending the previous season on loan at St James' Park.
The 28-year-old was one of La Real's standout performers last term, scoring five goals and three assists in 32 league appearances, helping the side secure qualification for the Europa League in the upcoming season.
His impressive performances earned him a spot in Luis de la Fuente's Euro 2024-winning Spain side, and he played a vital role for them, scoring a stoppage-time winner to knock host nation Germany out of the competition in the quarter-final.
Arteta and Arsenal's sporting director Edu are said to be huge admirers of the Spanish midfielder, but their hopes of bringing him to the Emirates Stadium this summer seem to have taken a significant knock this week.
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Arsenal opening bid for Mikel Merino rejected
According to The Independent, the Gunners officially confirmed their interest in Merino by making an opening bid of around £25m, but La Real swiftly rejected the offer as it did not meet their valuation of the player.
The report adds that the La Liga side are looking for closer to £35m for the 28-year-old, despite the player now being in the final 12 months of his current deal at Reale Arena.
Both clubs are still in conversation over a deal, though, with Edu believed to be in Spain at present, trying to work toward finalising an agreement with Sociedad.
It is understood that Merino is eager on a return to the Premier League to work under Arteta, and has already turned down a contract extension with the Basque club.
The Spain international is said to have already been in conversation with the Gunners and has agreed personal terms over the potential move.
Additionally, Merino's representatives are believed to have had discussions with La Real's chiefs, informing them of their client's intentions to leave this summer.
With his contract ticking down, Real Sociedad are in a tricky position and may be forced to consider lowering their asking price, or they could run the risk of losing the midfielder for free at the end of the next season.
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Arteta eyeing up further reinforcements before transfer deadline
After a slightly slow start to the summer transfer window, business has begun to pick up at the Emirates in recent weeks, with the club confirming the signing of Riccardo Calafiori last month.
The Gunners also made David Raya's move permanent earlier in the window are are believed to be looking at bringing in a wide midfielder and a new centre-forward before the transfer window slams shut.
Reports in recent weeks suggested that the club were pursuing a move for Merino's compatriot Nico Williams, but their interest has diminished since the player expressed his desire to remain in La Liga this season.
Williams is now the key transfer target of Barcelona, though Athletic Bilbao are doing everything in their power to keep him at the club, including handing him the number 10 jersey for the upcoming campaign.
Arsenal are also rumoured to be in constant contact with Sporting Lisbon striker Viktor Gyokeres as a replacement for Eddie Nketiah, whose future looks certain to lie away from North London.
