Inter Milan have rejected a swap offer from Arsenal for Ivan Perisic.

The Gunners have stepped forward with negotiations for the Croatia international.

Arsenal have offered to take Perisic on loan with an option to buy for €40m, or include Mesut Ozil as part of the exchange, says Sky Italia.

However, Inter are only prepared to accept cash.

“It's natural Perisic is talked about, because everyone values him the same way we do. If someone is interested, the conditions have to be right to pay his value, because he is such a strong player," Inter coach Luciano Spalletti said on Saturday.

“If someone wants to sign him, then they must create the conditions to pay for him, because this is a very strong player."