Dinamo Zagreb director of sport Zoran Mamic claims Arsenal have deemed Croatian starlet Mateo Kovacic too expensive to sign.
The 17-year-old attacking midfielder is hot property in Croatia having burst onto the scene in Zagreb late last year.
Mamic says Arsene Wenger's side rate Kovacic highly but believe the youngster, who has previously been linked with Ajax, Juventus and Bayern Munich, would be out of their price range if Dinamo decide to sell.
"A few days ago I talked with some of my friends from Arsenal," he told 24sata. "I told them that Mateo is in good form, that he is playing good.
"They said that is very good for us, but bad for them. They say that Arsenal can't join this 'dance of millions' for him.
"They rate Kovacic very highly but are also afraid that he will be too expensive for them soon."