Arsenal boss Mikel Arteta is facing a limited summer transfer budget.
The Telegraph says the Gunners are facing a scenario where they will only be able to bring players in on free transfers, loans or swap deals.
The report adds that the only option for the club to pursue their top targets is if they can raise significant funds through cashing in on either Pierre-Emerick Aubameyang or Alexandre Lacazette.
Arsenal captain Aubameyang is a target for both Barcelona and Paris Saint-Germain as he enters the final year on his current Emirates deal.
While the Gunners are said to be interested in a swap deal with Atletico Madrid involving Lacazette and former target Thomas Lemar.
Arsenal are expected to be facing a battle to keep pace with the rest of the Premier League's powerhouses in the market this summer following the financial impact of the coronavirus pandemic.
The club's latest accounts showed a £27.1 million deficit back in February - the first time they had announced an operating loss since 2002.