Arsenal have rejected a £10m bid from West Brom for Kieran Gibbs, according to Sky sources.
Sky Sports News understands the Gunners are holding out for closer to £12m for the 27-year-old left-back.
Gibbs was not included in Arsene Wenger's squad for the pre-season tour to Australia and China.
Sky sources reported earlier this week that Baggies boss Tony Pulis sees Gibbs as his best option at left-back this summer and had approached Arsenal to discuss a potential transfer.
Pulis, who is currently with his squad in Hong Kong for the Asia Trophy, has been looking for a specialist left-back.
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Gibbs, 27, made just eight Premier League starts last season and 22 appearances in all competitions overall - his second season struggling for first-team games.
Gibbs has 10 England caps but has fallen out of the national-team frame while his chances have been limited under Wenger.
Gibbs is a product of Arsenal's academy, who made his debut during the 2007/08 season after spending a short time on loan at Norwich City.
West Brom have so far made only two signings this summer; Jay Rodriguez from Southampton and Zhang Yuning from Vitesse but the 20-year-old has been loaned to Werder Bremen.
