The Gunners were reported at one stage this summer as having all but wrapped up a deal to take the 25-year-old to the Premier League, reported to have agreed a €27m fee with Madrid.
However, on from reports that Los Blancos were pushing for a higher price, Arsenal’s deal has seemingly fallen through, whilst interest from Napoli and Chelsea has since emerged.
Arsenal remain interested in the Argentine, but are not prepared to push beyond a €26m budget for his purchase.
Madrid are understood to be asking any interested party for a non-negotiable €40m fee to take Higuain.
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