Arsenal have blocked Emile Smith Rowe from leaving the Premier League North London club after rejecting two bids from Premier League clubs Fulham and Crystal Palace for their midfielder, as per Sky Sports.
Fulham and Crystal Palace are now discussing whether to come up with an improved bid for the 23-year-old.
Smith Rowe has been linked with a move away from the Gunners this summer because of his lack of game time under manager Mikel Arteta.
He only made three Premier League starts for Arsenal under Arteta last season after a lengthy spell of injury issues.
Smith Rowe is understood to be ready to leave if he can secure first-team football away from Emirates Stadium.