Sunderland are ready to go to £10 million for Wigan Athletic midfielder Lee Cattermole.
The Daily Star Sunday says Sunderland have had two bids rejected - the second was for £7m - and both Wigan chairman Dave Whelan and manager Roberto Martinez, Steve Bruce's successor, have insisted Cattermole is not for sale.
But Bruce is considering one more try for the midfield hardman, 21, who he signed for Wigan from Middlesbrough a year ago for £3.5m.
Arsenal, however, are also understood to be eyeing Cattermole, who was part of the England Under-21 team that reached the final of this summer's European Championships.
Gunners boss Arsene Wenger is in the market for a midfield ball-winner.
And signing Cattermole would also boost his quota of English players for European competition.