The youngster is a major target for Edu, who made enquiries with Valladolid in January. Bournemouth also made an attempt.
Fresneda's contract did carry a €40m buyout clause - but that has now been slashed by 50 per cent to €20m due to Valladolid's relegation, says Radio Marca.
Interestingly, the 18 year-old has been taking English and German language lessons this season.
Fresneda's contract runs to 2025 and along with Arsenal, he is also on Borussia Dormund's radar.