Arsenal transfer target M'Baye Niang has flown to Italy for talks with AC Milan, according to reports.
The 17-year-old impressed on a recent trial in North London and Arsene Wenger had believed that he had agreed a deal in principle with Caen to sign the striker.
The Mirror understands that Caen are unhappy with the way in which the Gunners want to structure payment for the transfer, staggering the fee over a longer period.
Milan have made their move and will enter into negotiations for the highly-rated teenager.
Tottenham Hotspur and Manchester City have also expressed an interest in signing Niang this summer, according to the player's agent.