Arsenal's attempt to snap up France forward Alexandre Lacazette on Tuesday suffered a setback.
The Gunners were informed by Lyon that the 35m euros (£29.3m) on the table was not enough to sign the star striker.
Lacazette, who has been on the radar of top European team, found the back of the net on 21 occasions in 34 league matches last season.
The 25-year-old is under contract at Lyon until 2019.
"Lacazette is irreplaceable and one of the main leaders," said the French club in a statement on social micro-blogging site Twitter.
Lyon however denied a newspaper report, claiming it had rejected a 48m euros (£42.2m) from the North London club.
It is a well-known fact that Arsene Wenger is in the market for a striker this summer.
Arsenal first-choice Jamie Vardy decided to stay put in Leicester.
The club in the past has relied on Olivier Giroud who has failed to inspire.
Many believe the reason behind the club's failed bid to win the title last season was due to the absence of a clinical striker.