Tottenham Hotspur have made a £15.7million bid for Arsenal midfielder target Bernard, reports the Daily Express.
According to Atletico Mineiro's president Alexandre Kalil, the north London rivals have both declared an interest in signing the Brazil international this summer, but neither club have met the player's valuation.
So far, only Shakhtar Donetsk have made an offer €25million - or £21.8million - but Bernard is said to be unconvinced about a move to Ukraine, and is instead holding out for the opportunity to head to the Premier League.
"Tottenham made an offer of €18 million (£15.7m) for Bernard but they withdrew," Kalil said in an interview with Radio Itatiaia.
"Arsenal told us that they would bid but never did so. So what we have now is a €25m (£21.8m) bid from Shakhtar."
Gunners boss Arsene Wenger was thought to be leading the chase for the South American's signature, but that was before it had become public knowledge that Andre Villas-Boas had lodged a bid to bring Bernard to Tottenham.
After failing to meet Atletico Mineiro's asking price, Spurs are now understood to have dropped their interest in the player, so it looks like the 20-year-old will not be on his way to White Hart Lane or the Emirates Stadium this window.
"If he does not want to go to Ukraine, that's no problem [either]," added Kalil. "It's in his hands.
"I have talked with him. It's a private matter. If he does not want to go, we will not force him."