The 22-year-old scored 21 Ligue 1 goals on loan at Reims last season and Monaco are keen to bring him back.
However, the Gunners want £50million for the America international, who remains a top target for Inter Milan after withdrawing from talks to sign Chelsea striker Romelu Lukaku.
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Inter are believed to be unable to meet this asking price, but could introduce a buyback clause or offer a bargain percentage of a future sale to lower costs.
Balogun wants to play regular first-team football next season and that probably won’t be the case at Emirates Stadium with Gabriel Jesus, Eddie Nketiah, Kai Havertz and Leandro Trossard all able to play up front.
Arsenal are also negotiating the sale of goalkeeper Matt Turner to Nottingham Forest.
The two clubs had negotiated a fee of around £7m but the full package could now be worth around £10m if finalized.
Mikel Arteta is keen on signing Brentford’s David Raya as a replacement and the two London clubs continue to negotiate a transfer fee.
https://www.standard.co.uk/sport/football/arsenal-fc-transfer-news-balogun-turner-2023-b1099152.html Arsenal reject Monaco’s £50million bid for Folarin Balogun as talks continue with Matt Turner