Arsenal have ruled out a move for Croatian starlet Mateo Kovacic, according to Dinamo Zagreb director of sport Zoran Mamic.
Ajax, Juventus and Bayern Munich have also been linked with a move for the 17-year-old, who has been earning rave reviews since making his debut at the Stadion Maksimir last year.
Whilst the Gunners rate Kovacic highly, a move to the Emirates now appears out of the question, with Mamic revealing Arsenal would not be willing to meet a high valuation.
"A few days ago I talked with some of my friends from Arsenal," he told 24sata.
"I told them that Mateo is in good form, that he is playing good. They said that is very good for us, but bad for them. They say that Arsenal can't join this 'dance of millions' for him.
"They rate Kovacic very highly but are also afraid that he will be too expensive for them soon."
Arsene Wenger has a track record of bringing talented youngsters to north London, with Carl Jenkinson the latest to join Arsenal this summer.
However, Kovacic is unlikely to join his fellow teenager in north London, and Arsenal will now have to look to strengthen their youth ranks elsewhere.