Arsenal have already seen their £2m asking price to take Carl Jenkinson on loan next season matched by Premier League club Sunderland, reports The Telegraph.
West Ham were keen on bringing Jenkinson back to east London on a permanent basis, but Arsene Wenger has already ruled out a transfer.
The Hammers and Arsenal appear to be at a deadlock in negotiations over the 23-year-old, who impressed during a loan spell at Upton Park last term.
And after seeing the right-back perform so well, Arsenal demanded £2m from West Ham to renew the temporary deal for another season.
With new West Ham manager Slaven Bilic busy trying to buy the likes of Loic Remy from Chelsea, Sunderland have stolen a march on their Premier League rivals by meeting Arsenal's demands.
However, there is significant doubt as to whether Jenkinson, who himself grew up in south-east London, would consider a move to Wearside after settling so well at West Ham.
Bilic has already told Jenkinson that he remains in his plans for the first team next season and West Ham are confident that the one-time England international wants to stay.
Sunderland have offered the £2m fee up front and accepted that they will have no option to make the deal permanent at the end of the season.
While Jenkinson may be on his way out of the Emirates for at least another season, another England star may be on his way in.
Raheem Sterling is set to leave Liverpool after falling out with club officials over a new contract and Brendan Rodgers believes Arsenal is his favoured destination.
Liverpool are expecting Arsenal to launch a bid as early as this week, but whether they can compete with the financial power of Manchester City is another matter altogether.
Petr Cech is another star who could be lining up for the Gunners next season with the goalkeeper set to tell Chelsea today that he wants to leave for their London rivals.
Jose Mourinho will try his best to convince Cech, 33, to leave for a foreign club like PSG, but he is settled in London and does not like the idea of uprooting his family.
Arsenal would have to pay up to £11m and may also have to offer Chelsea a homegrown player to sign Cech.
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