The Cottagers had paused talks for Nelson, who spent last season on-loan with Fulham, to switch sights on focus on Shakhtar Donetsk winger Kevin.
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However, Shakhtar have rejected an offer from Fulham and are insisting Kevin isn't for sale.
As such, Fulham have renewed contact with Arsenal over a deal for Nelson, says the Mirror.
Arsenal are ready to sell the winger in the coming days, though Fulham would prefer an initial loan-to-buy arrangement.