Zenit St Petersburg have revealed they have turned down a bid from Arsenal for Andrei Arshavin.
Arsenal are hoping to sign the Russian schemer as they look to bolster their attacking options in this month's transfer window.
Gunners boss Arsene Wenger has been coy on his side's interest in Arshavin, but Arsenal are believed to be leading the chase for the 27-year-old.
Arshavin is determined to leave Zenit this month after being frustrated in his attempts to move last summer.
Reports suggest Zenit are demanding a £20million fee for Arshavin, but the Gunners value the 27-year-old at considerably less.
Zenit spokesman Alexei Petrov has confirmed Arsenal are the only club to have made an official approach for Arshavin, but that their initial offer was turned down.
"I can confirm that Zenit did get an official offer from Arsenal about Andrei Arshavin," Petrov told the Mail on Sunday. It was rejected as insufficient.
"They offered about £10m. No new offers have arrived from them since. At the moment, Arsenal are the only club to have approached us about the player."
It remains to be seen if Arsenal will increase their offer for Arshavin with fresh reports suggesting Manchester City could hijack their move for the talented playmaker.