Arsenal may pull out of the race to sign Gonzalo Higuain after Real Madrid hiked up the price by over £10million.

According to The Times, the Gunners had agreed all personal terms with the Argentine international’s agent and father, Jorge, but the move is in danger of not happening.

Napoli president Aurelio de Laurentiis confirmed they were also interested in Higuain and the report suggests this may have something to do with the price hike.

Arsenal were hoping to complete a deal for somewhere in the region of £23million, but the Santiago Bernabeu club have now told the Gunners he will cost them a whopping €40million, which is around £36million.

Napoli have just sold Edinson Cavani to Paris Saint-Germain for £53million and De Laurentiis has claimed the Stadio San Paolo club have as much as €124.5million to spend this summer.

The Gunners may well decide to look elsewhere for recruits up front and have been linked with both Luis Suarez of Liverpool and Wayne Rooney of Manchester United.

Do YOU want to write for GiveMeSport? Get started today by signing-up and submitting an article HERE: