Dalian Yifang are demanding Arsenal pay a fee in excess of £25million to complete the signing of Yannick Carrasco.

The Gunners are keen on bringing in at least one winger this summer and have revived their interest in the 25-year-old after failing to complete a loan deal in January.

Arsenal signed Denis Suarez from Barcelona instead but he proved to be a huge disappointment in six appearances totalling just 95 minutes and has since returned to Spain.

The club have also expressed an interest in Bournemouth’s Ryan Fraser but initially made contact with the Chinese Super League side over Carrasco to explore the possibility of a season-long loan with an option to buy.

Carrasco last week expressed a desire to return to Europe ahead of Euro 2020, having moved to China from Atletico Madrid in February 2018.

A temporary switch would suit Arsenal given their modest £40m transfer budget and would also allow them to reach a figure closer to the reported £8.8m-a-year wage Carrasco currently receives.

The Belgian international – who is expected to feature against Scotland in Tuesday's Euro 2020 qualifier – is thought to be willing to take a pay cut but Dalian want a straight sale to reinvest the money elsewhere.

Talks are ongoing with Arsenal hopeful of making a breakthrough. Options being discussed include staggering payments over a longer period or building in various performance related add-ons in order to reach an agreement.

Inter Milan and AC Milan were tracking Carrasco in January but have yet to make a serious offer this summer while Roma are also monitoring the situation.

Arsenal are keen to be proactive in the market but need to raise further funds through player sales to address all the vulnerable areas of Unai Emery’s team.

The club are keen on adding a centre-back, a central midfielder and a full-back.