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The Gunners are among several clubs interested in signing Locatelli after he shone brightly for the Azzuri during this summer's European Championships.
But Juventus are also said to be keen on a move for the 23-year-old and have reportedly bid £25m plus a young midfielder as they look to beat Arsenal to land the rising star.
Just last week, Juventus had offered Sassuolo a player-plus-cash swap deal for Locatelli with midfielder Nicolo Fagioli used as lightweight in the deal.
But Fagioli's representative Andrea D'Amico says the promising 20-year-old will not be leaving Turin any time soon.
Juventus are always leading the race for Locatelli - new meeting soon with Sassuolo, Manuel is still pushing to join Juve. :flag_it:
Arsenal's stance: they'd be prepared to pay Sassuolo price tag [€40m]... but #AFC only want to sign players happy and 100% convinced to join the club.
- Fabrizio Romano (@FabrizioRomano) July 18, 2021
"When he played against SPAL and Crotone last term, he proved he can be a protagonist of Juventus' future.
"Juventus would like to sign Locatelli and Arsenal have already offered €40m."
Despite Arsenal reportedly meeting Sassuolo valuation for Locatelli, the Gunners look set to be disappointed with Locatelli preferring to stay in Italy, according to the Guardian.
Arsenal have not played in the competition for four years, with next season their first campaign out of Europe in 25 years - a key detail that will, inevitably, see them miss out on Locatelli.
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