ChronicleLive says the Gunners are facing a tricky challenge with the Premier League's Profit and Sustainability rules ahead of the summer market.
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Indeed, it's claimed there will be only £40m for Arsenal to spend unless they make some serious sales.
It's understood the situation has forced Arsenal to drop plans for Newcastle United midfielder Sandro Tonali.
Arsenal made enquiries in January, but after running the numbers and learning of Tonali's £100m-plus price-tag, the Italy international is now off their shopping list.