West Ham United boss Sam Allardyce admits there's been no movement over Momo Diame's contract.
Diame, 25, only joined the Hammers in the summer from Wigan, but is understood to have a £3.5million buy-out clause.
While there has been no official approach lodged by the Gunners as yet, they are reported to have scouted Diame in West Ham's midweek FA Cup defeat at Manchester United.
Allardyce accepts the situation is difficult. He said: "The owners have tried to renegotiate the contract, but they haven't been successful at the moment."