Arsenal have raised their bid for SC Braga midfielder Pedro Neto.
A Bola says the Gunners have lodged a new bid of around £13m (€15m) with Braga.
However, that has been rejected and club chief Antonio Salvador is holding out for Neto's £17.6m (€20m) release fee.
Arsenal are joined in their pursuit of the young forward by La Liga giants Barcelona.
Barca are soon expected to up the ante by bettering Arsenal's opening offer.