Even so, Arsenal hope to finalise a deal in the coming days that could be worth up to £80m.
Confidence that a move is close is not linked to Eddie Howe’s decision to step down as Newcastle head coach.
Arsenal had shown interest in Morgan Rogers, who has joined Chelsea for £117m from Aston Villa, but they were unwilling to exceed their £80m valuation.
It is understood Arsenal were given the chance to match Chelsea’s offer for Rogers but declined.
Newcastle, meanwhile, now risk losing another key player, with Sandro Tonali already having joined Tottenham and Anthony Gordon moving to Barcelona.
Howe left Newcastle on Thursday after five years in charge, with Matthias Jaissle, manager of Saudi Pro League side Al-Ahli, expected to be appointed as his replacement.