Arsenal have reportedly pulled out of the race to sign Brighton midfielder Moises Caicedo this summer.
Caicedo, 21, has attracted attention from several top Premier League teams, with Chelsea and Manchester United also interested in the midfielder.
Arsenal had two bids, including a £70m offer, for Caicedo rejected by Brighton in the January transfer window.
Advert
Chelsea also had a lower offer turned down by the Seagulls.
Arsenal were expected to return with another bid for the Ecuador international this summer.
But they have now pulled out of the race to sign Caicedo as they focus instead on deals for West Ham captain Declan Rice and Chelsea forward Kai Havertz.
It comes amid claims Arsenal will have to increase their bid for Rice to £100m after having an opening offer worth £80m with £10m in add-ons rejected by West Ham.
Advert
The Times report that 'Arsenal have withdrawn their interest in Moises Caicedo' and that it is 'perhaps not unrelated to Rice's valuation'.
Brighton are said to be seeking £80m for Caicedo, who only signed a new five-year deal at the Amex Stadium in March.
Chelsea now favourites to sign Caicedo
Advert
Fabrizio Romano says Chelsea are now the frontrunners to sign the midfielder.
"Chelsea are working hard on Moisés Caicedo deal. Talks have been taking place for weeks. Nothing done yet," tweeted Romano.
"It has always been Chelsea frontrunners despite rumours of Arsenal bid in the last weeks.
"Arsenal focus remains on Declan Rice and [Kai] Havertz."
Advert
In January, Caicedo published an open letter to Brighton thanking them for his time at the club but urging them to allow him to move on amid interest from Arsenal and Chelsea.
"I am grateful to [club owner] Mr. [Tony] Bloom and Brighton for giving me the chance to come to the Premier League and I feel I have always done my best for them. I always play football with a smile and with heart.
"I am the youngest of 10 siblings from a poor upbringing in Santa Domingo in Ecuador. My dream always to be the most decorated player in the history of Ecuador.
"I am proud to be able to bring in a record transfer fee for Brighton which would allow them to reinvest it and help the club continue to be successful.
Advert
"The fans have taken me into their hearts and they will always be in my heart so I hope they can understand why I want to take up this magnificent opportunity."
Featured Image Credit: AlamyTopics: Arsenal, Chelsea, Manchester United, Brighton And Hove Albion, Transfers, Premier League, Moises Caicedo