The Gunners are chasing a deal for Hincapie this week, but attempts to negotiate a fee with Bayer have been dismissed.
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Instead, says the Mirror, the only option for Arsenal to sign the defender is to match his €60m sale option.
Hincapie, 23, appeared to say an emotional farewell to Bayer fans after their clash with Hoffenheim on the weekend.
For their part, Arsenal favour a loan-to-buy arrangement for the Ecuador international, but for now, Bayer are referring them to Hincapie's buyout clause.
