Arsenal have been told that they must increase their offer for Caen teenager M'Baye Niang.
Reports in France recently suggested that the 17-year-old striker was the subject of a £980,000 bid by the Gunners.
However, Caen club president Jean-Francois Forlin has now said that they must try again as he looks for a fee in excess of £1m.
"The offer made by the English club did not reach the amount we want, but we are still in touch," he told reporters.
Niang, who signed his first professional contract with Caen last summer, has two years left on his deal.
