Arsenal are set to miss out on Belgium international Yannick Carrasco, with the winger expected to join another club in Europe after negotiations surrounding his transfer fee fall through.
The former Atletico Madrid man looked set to become Unai Emery's first summer signing, signalling very strongly that he wanted to leave China with most media outlets linking him with north London giants Arsenal.
However, according to the Sun, Dalian Yifang demanded £30m for their star player, and the need for a squad reinforcements means manager Unai Emery cannot afford to blow almost the entirety of his budget on just one player.
After missing out on Champions League football, Emery has had his transfer budget slashed, with the Spaniard thought to only have around £45m at his disposal.
Following an unsuccessful attempt to sign Carrasco in January, Arsenal were willing to re-enter negotiations this summer in order to secure their man, with Carrasco open to a move away from the Chinese Super League.
Arsenal's inability to meet their valuation means they risk losing the Belgian to another of Europe's top teams.
With no Champions League football at the Emirates next season, the reduced transfer budget is seriously affecting the Arsenal boss' ability to improve his squad in preparation for next season.
Emery's failure to land Carrasco means he now looks set to miss out on two of the midfielders Arsenal have been heavily linked with. This comes after news broke that midfielder Ryan Fraser looked set to stay another season on the south coast at Bournemouth.
After losing key midfielder Aaron Ramsey to Juventus and Danny Welbeck also leaving this summer on a free, Arsenal will need to look at selling some players in order to generate some extra funds.