Arsenal are out of the race to sign Romeo Lavia this summer after making a decision on Thomas Partey's future, according to Fabrizio Romano.
Lavia, 19, is widely expected to leave Southampton this summer following the club's relegation to the Championship.
Arsenal had been touted as potential suitors following Granit Xhaka's departure to Bayer Leverkusen earlier in the summer.
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However, the Gunners have now withdrawn from the race to sign the teenager, leaving the pathway clear for fellow interested party Liverpool.
Partey, meanwhile, has been the subject of mass speculation after Mikel Arteta signed Declan Rice from West Ham earlier this summer, who plays a similar position to the Ghanaian.
Juventus were said to have agreed personal terms with Partey last month, according to Sky Sports Italia.
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While clubs from Saudi Arabia were reportedly keeping tabs on the 30-year-old, but Arsenal are yet to receive a suitable offer.
Romano has now confirmed that Arteta is eager to keep him at the Emirates, stating that the north London club would require a fee in the region of €40/45m to part ways with the midfielder this summer.
"Arsenal are not active in Romeo Lavia race now as Thomas Partey has good chances to stay," the Italian tweeted.
"Saudi clubs approached Gunners days ago, Juventus called in June but never close to €40/45m package requested by Arsenal.
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"Huge bid or Thomas stays. Arteta, happy with him."
Liverpool are now thought to be frontrunners to sign Lavia, after they had an initial bid worth £37m rejected by Southampton for the midfielder on Wednesday.
But the Reds are allegedly preparing an improved offer for the former Manchester City player worth £42.5m plus £2.5m in add-ons.
Topics: Arsenal, Thomas Partey, Romeo Lavia, Mikel Arteta, Football, Transfers, Premier League