Sky Sports News understands that Arsenal are rated at only 50-50 to land Russian star Andrei Arshavin.
The Gunners were reported to have a deal for the Zenit St Petersburg playmaker virtually sewn up.
Arsene Wenger has made landing the talented 27-year-old his priority during the January transfer window, keen to bring in creative cover for the injured Cesc Fabregas.
However, his pursuit of a man that caught the imagination of Europe's top clubs during an eye-catching showing at Euro 2008 looks in danger of collapse.
Zenit have always insisted that they would be willing to part with Arshavin should their valuation of the player be met.
The reigning Uefa Cup holders have also announced on numerous occasions in recent weeks that they expect a sale to be pushed through before the current window closes on 2nd February.
With the situation now appearing to have taken a backwards step it remains unclear as to where Arshavin's future may lie, with Arsenal facing an anxious wait before determining whether or not he will be heading to Emirates Stadium.
The Gunners could feasibly see their No.1 target snatched from under their noses by Premier League rivals Manchester City.
The Blues have seen their efforts to take Kaka to Eastlands come up short and it is thought that Mark Hughes may be about to turn his attention to Arshavin.