Everton have bid £30million for Arsenal playmaker Alex Iwobi, football.london understands.
The Gunners have rejected Everton's bid. However the Toffees are expected to return with an improved offer.
It remains to be seen how Iwobi, a boyhood Arsenal fan, will respond to Everton's interest.
Everton had been hoping to sign Wilfried Zaha but had already seen one bid turned down by Crystal Palace, who are increasingly reluctant to lose their star player with so little time left in the transfer window to secure a replacement.
As such Everton's focus has turned to Iwobi, who enjoyed his most impressive season for Arsenal under Unai Emery last term, providing six goals and nine assists in all competitions.
Arsenal had not previously made Iwobi available for transfer but such a sizeable offer could hand them a major headache as cashing in on the 23-year-old would provide them with the funds to make the major addition at centre-back that Emery and the club hierarchy want.
After his involvement in the Africa Cup of Nations Iwobi, who has a contract until 2022, has been on holiday and was not expected to play a major part in Arsenal's opening game of the season away to Newcastle on Sunday.
Iwobi has made 149 appearances for Arsenal since breaking into the team midway through the 2015-16 season, scoring 15 goals and providing 27 assists. Both his managers with the Gunners - Emery and Arsene Wenger - have consistently called on the Nigerian international to make a greater direct contribution on the scoresheet.
The addition of Nicolas Pepe for a club record £72million and the emergence of youngsters Bukayo Saka and Reiss Nelson has added to the options Emery has in wide areas. However Iwobi has insisted that he will not shy away from competition for places.
"I have had it all over the years, being told I'm not good enough," he said during the Africa Cup of Nations. "Obviously my joy is to play football and not just sit out.
"If it comes to that I would have no choice but to leave. But I would always put up a fight to play – that is what I've done all my life."
