William Saliba may end up becoming a Spurs player as Tottenham have reportedly made a quick move to snap up the teenager.
The Saint-Etienne defender was believed to be heading to the Emirates until the latest development.
Arsenal were confident of securing a £25million deal for the 18-year-old that would see Saliba loaned back to the Ligue 1 club for a season, inews.co.uk reports.
But reports in France say that Tottenham lodged a superior bid and intend to complete the deal.
Arsenal manager Unai Emery may now have huge worries after captain Laurent Koscielny refused to take part in their four-match tour of the US.