Bengaluru, January 11: Arsenal have reportedly agreed personal terms with Denis Suarez but cannot afford to meet Barcelona's demands.
Unai Emery managed the playmaker at Sevilla where they won the Europa League and is keen to link up with him again at the north London club.
However, the cash-strapped Gunners will not meet Barca's asking price in January and will instead ask for a loan with a purchase option in the summer.
Report adds that Suarez has been promised he can leave the club this window and, although it is not ideal, the Catalan giants will keep their promise.
Barcelona's issue comes as they wish to strengthen their squad by shipping out their wantwaway midfielder meaning they need cash up front.
Suarez spent his youth career at Manchester City and Celta Vigo before joining Barcelona in 2013. He played for a season in their youth team and impressed enough to earn a loan move to Emery's Sevilla.
Villarreal signed Suarez in 2015 but he returned to the Nou Camp a year later and has played 69 times over the last three seasons.
Just six of those appearances have come this campaign and the versatile midfielder is keen to leave for regular football.
Emery admitted on Thursday (January 10) that Arsenal have no funds for permanent switches.
"I don't know about his situation," said the Gunners boss on Suarez. "But we can only sign players on loan.
"I know the club is working to find players who can help us, with this condition. I know these players and they are very good players.
"But I cannot sign more."
Arsenal are likely to need another option in the middle soon, with Aaron Ramsey set to quit for Juventus in the summer.
The Gunners are reportedly set to rival Chelsea for Cagliari midfielder Nicolo Barella.
The Italian midfielder has emerged as a target for Chelsea as they look to bring in a replacement for Cesc Fabregas.
Barella, 21, has also attracted interest from Napoli and AC Milan with Cagliari facing a battle to keep hold of him beyond this month.