Eddie Nketiah has turned down Arsenal's latest offer of a new contract.
Arsenal have refused to concede defeat in their attempts to keep Nketiah whose existing contract expires next summer.
Mikel Arteta has spoken publicly about his hopes to keep the 22 year-old and that has been firmed up by Arsenal's fresh bid to resolve his long-term future.
However the striker's priority is to play regular football rather than secure improved terms and an exit currently remains the most likely outcome.
Sportsmail reported earlier this month how Nketiah had informed Arsenal he wants to leave the club after Arteta reiterated his desire to keep him.