Arsenal have reportedly been informed that they will need to pay £27m to complete the signing of Porto midfielder Danilo Pereira.

While the Gunners appear to have made Atletico Madrid's Thomas Partey their priority target, the financial implications of the coronavirus pandemic mean that the Premier League outfit must consider cheaper alternatives.

With Porto needing to sell players during the summer transfer window, Arsenal were hoping to sign Danilo for a cut-price fee.

However, O Jogo claims that the 28-year-old remains valued at £27m, potentially out of the North London team's price range.

Much could depend on whether Arsenal are able to recoup their asking prices for players which they hope to sell before the beginning of the new season.

Arsenal are allegedly open to offers for midfield duo Lucas Torreira and Matteo Guendouzi.