Arsenal are interested in a move for the Italian defender.
The Gunners are keen to add a back-up full-back to their ranks after Kieran Tierney's campaign was cut short by injury.
Nuno Tavares struggled while deputising for the Scotland international.
Mikel Arteta had been keen on recruiting Dimarco to act as cover for Tierney.
But Inter's £20m price-tag is beyond Arsenal's budget for a player who would not start week in, week out.
First-choice left-back Tierney underwent knee surgery last month after picking up an injury while on international duty.
When fit the Scotland star is one of the first names on Arteta's team sheet.
Meanwhile Dimarco himself is yet to establish himself as a regular starter at San Siro - 19 out of his 32 Serie A appearances last season coming from the bench.
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