West Ham United have rejected Arsenal's opening offer for midfielder Declan Rice, according to a report.
The Europa Conference League winners have managed to rebuff interest in their captain over the past couple of years, but he is about to enter the final 12 months of his contract.
As a result, West Ham co-chairman David Sullivan and first-team manager David Moyes have both admitted that Rice is likely to leave this summer in order to fulfil his ambitions of playing in the Champions League.
Despite interest from Manchester United, Chelsea and Bayern Munich - the latter of whom have now pulled out of the running - Arsenal are regarded as the favourites to sign the 24-year-old in the current window.
Rice is already believed to have agreed personal terms with Mikel Arteta's team, who were believed to have been closing in on a deal to sign the England international for a club-record £100m fee.
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The Gunners waited until after West Ham's Europa Conference League final to make their move, but according to the Daily Mail, their opening bid has been turned down.
The report claims that Arsenal submitted an offer of £80m with an additional £10m in add-ons, but West Ham believe that Rice is worth as much as £110m, in spite of his contract situation.
Arsenal chief Tim Lewis and West Ham's vice-chairman Karren Brady apparently discussed a deal during Premier League clubs' recent annual general meeting (AGM), and Arsenal will be back with an improved offer.
Rice is said to have earmarked Arsenal as his favoured destination for a summer move, given that the Gunners can offer him Champions League football and the chance to remain in London.
However, Manchester City have supposedly now emerged as serious contenders for Rice's signature, and West Ham will welcome bids from the English champions in the hope of sparking a bidding war, which Arsenal are not willing to get involved in.
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Rice has amassed 15 goals and 13 assists in 245 appearances for West Ham since coming through their youth academy, including five goals and four assists from a half-century of appearances last season.
The England international's potential arrival at the Emirates could trigger Granit Xhaka's departure, as Bayer Leverkusen are rumoured to be on the verge of sealing a £13m move for the Switzerland international.
However, Arsenal will not sanction Xhaka's exit without signing a replacement first, while Thomas Partey and Albert Sambi Lokonga's futures are also being called into question.
Meanwhile, Man City could wave goodbye to Ilkay Gundogan on a free transfer at the end of the month, while Bernardo Silva has apparently informed the Citizens of his desire to leave too.
Chelsea's Mateo Kovacic is thought to be on the brink of a move to the Etihad Stadium, but City lost out to Real Madrid in the race for Jude Bellingham, whose arrival at the Santiago Bernabeu was announced by Los Blancos on Wednesday.
Ben Knapton
