Arsenal have turned down Nottingham Forest's first offer for Eddie Nketiah, but discussions about a potential transfer are still ongoing, according to a report.
The 25-year-old came through the ranks at Arsenal but has struggled to nail down a starting role since debuting for the Gunners senior team in 2019.
Nketiah is widely expected to leave the Emirates Stadium this summer in search of guaranteed game time and was on the verge of joining Marseille in recent weeks.
The striker was believed to have agreed personal terms with Roberto De Zerbi's side but the deal collapsed as the Ligue 1 outfit failed to meet Arsenal's valuation of their player.
Several Premier League teams continue to show strong interest in the one-time England international, who is reportedly still eager to move in order to secure regular playing time.
Arsenal knock back Forest opening bid for Nketiah
According to The Athletic, Nottingham Forest have made Nketiah their priority transfer target this summer and are leading the race to secure the services of the Arsenal attacker.
However, the report adds that the Reds have seen their opening offer of £25m including add-ons for the striker knocked back, as it did not meet the Gunners' asking price for their player.
It is understood that Mikel Arteta's side are looking for closer to £35m for their academy graduate, who still has three years remaining on his current deal at the Emirates.
The remaining term on Nketiah's contract also means that the North Londoners are under no pressure to sell for less than they want for him over the next two seasons.
Negotiations are said to still be ongoing between the clubs, while Bournemouth, Crystal Palace and Everton are believed to also be keeping an eye on the situation involving the Arsenal forward.
Nketiah's future at Arsenal still up in the air
Many expected that last season would be a breakthrough one for Nketiah, but he only made 10 Premier League starts and scored just six goals in 37 appearances across all competitions.
The England international has now found himself as the Gunners' third-choice attacking option behind Kai Havertz and Gabriel Jesus.
Jesus announced earlier this week that he has no intention of leaving the Emirates this summer despite only featuring for five minutes in the side's opening match of the season against Wolverhampton Wanderers.
Following the victory over Wolves, Arteta mentioned that he is not looking to sign a new striker this summer, adding that in Havertz, Jesus and Leandro Trossard, he feels he has sufficient cover in attacking positions.
However, the Gunners boss's failure to add Nketiah to the conversation perhaps suggests that the club are still looking to move the 25-year-old before the transfer window slams shut at the end of this month.