Arsenal's latest rejected bid for William Saliba could cost them dearly.

Saint-Etienne have knocked back the Gunners' offer of £27m for the French centre-back, according to the Mirror.

The Ligue 1 club are holding out for £30m for the 18-year-old, who has three years left on his contract until 2023.

Arsenal have agreed terms with Saliba, but the gap in negotiations between the two clubs has allowed for Tottenham to look closer into a deal for Saliba.

Spurs are hoping to sign defensive reinforcements this summer and have a far greater budget than their North London rivals.

Both clubs would be delighted to sign the precocious Saliba, who made 16 Ligue 1 appearances last season.