After ending their interest in Brentford striker Ivan Toney, the Gunners were rumoured to have switched their focus to a deal for Newcastle United talisman Alexander Isak instead.
The Sweden international ousted Callum Wilson to become Newcastle's first-choice striker in the 2023-24 campaign and enjoyed a terrific campaign under Eddie Howe, netting 21 Premier League goals and 25 in all tournaments.
Only Erling Haaland (27) and Cole Palmer (22) registered more English top-flight goals than Isak, who now has an overall total of 35 strikes from 67 matches in a Magpies jersey under his belt.
Arsenal were already believed to have been interested in the 24-year-old during his days at Real Sociedad, who sold him to Newcastle for £59.6m in 2022, and the Gunners have continued to monitor his progress in the Premier League.
However, Newcastle are supposedly holding out for an eye-watering £180m to entertain the idea of selling Isak, who still has four years left to run on his contract with the Magpies.
As a result, the Gunners were likely to move on to other targets anyway, and Isak's latest transfer admission should see Mikel Arteta's men all but concede defeat in their efforts to prise him away from St James' Park.
Speaking to Swedish outlet Fotballskanalen, Isak reiterated his love for Newcastle - despite their failure to qualify for European football for 2024-25 - and said that he is not considering leaving any time soon.
"I am enjoying myself at Newcastle, and I had the best season in my career — that should not be underestimated. I love everything about the club; the fans, and the city," the ex-Borussia Dortmund striker said.
"It (my future) is not something I will speculate about, I have no thoughts on leaving. There has been no talk about it at the club and I have received no information that the could would have to sell me."
Arsenal to move for Bundesliga man as Isak alternative?
Even without Isak's recent admission, Arsenal bowing to Newcastle's apparent £180m demands was completely unrealistic, and sporting director Edu and co may have even baulked at an asking price half of that figure.
Price concerns over Napoli's Victor Osimhen makes the Nigerian an unattainable target too, so the Gunners are thought to have switched their focus to 21-year-old RB Leipzig hotshot Benjamin Sesko.
The Slovenia international - who will line up against England at Euro 2024 - scored in his final seven Bundesliga appearances of the 2023-24 season and has supposedly given the thumbs-up to joining Arsenal thanks to their participation in the Champions League.
Manchester United and Chelsea cannot offer Sesko the chance to compete in Europe's top tournament, putting Arsenal at the head of the queue, but they only have until the end of June to activate his £55.3m release clause.
Arsenal will listen to offers of £30m or more for Eddie Nketiah to make space for a new attacking arrival, while the likes of Reiss Nelson, Emile Smith Rowe, Aaron Ramsdale, Albert Sambi Lokonga, Kieran Tierney, Thomas Partey and Nuno Tavares could be sold in the coming weeks as well.