Manchester City have ended their interest in Declan Rice after Arsenal made an improved £105m bid for the West Ham captain.
The PA news agency understands the Gunners made their latest offer for the 24-year-old England international on Tuesday after two previous approaches were rebuffed by the Hammers.
It was also reported City had a bid totalling £90m knocked back and the treble winners have now decided not to match or try to better Arsenal’s proposition.
It is believed the Gunners have offered £100m and a further £5m in potential add-ons. It would make Rice the most expensive British player of all time and eclipses Arsenal’s previous record transfer.
It is understood West Ham are unhappy with the payment structure put forward but, rather than dismiss the offer out of hand, are now looking to negotiate.
City felt the cost of the deal was too high. The club have already brought in one midfield reinforcement this summer in £30m Mateo Kovacic from Chelsea and were unwilling to meet the Hammers’ valuation.
City have a track record of pulling out of deals they feel are too expensive and are comfortable walking away again now. In recent years they have been interested in Harry Maguire, Jorginho, Kalidou Koulibaly and Marc Cucurella but have refused to get involved in bidding wars.
In contrast to their pursuit of Rice, Arsenal’s bid to sign Germany forward Kai Havertz has been more straightforward.
With a deal agreed with Chelsea, Havertz underwent a medical over the weekend and is expected to be announced as an Arsenal player within the next 24 hours as footage of his arrival video was leaked on social media.
Meanwhile, a move for Ajax full-back Jurrien Timber is still being worked on as Arsenal aim to improve a squad that finished second last season.
