Arsenal are the only club to have met Cruzeiro's asking price for Lucas Silva but the midfielder will continue to hold out for a move to Real Madrid, according to Spanish reports.
The 21-year-old starlet, who has garnered a reputation as one of the Brazilian club's outstanding talents, is expected to sign for Real during the January transfer window after Carlo Ancelotti revealed the club's interest in him.
Silva himself has been vocal in his support of the move, claiming a transfer to the Bernabeu would be a "dream come true". But Cruzeiro's refusal to budge on their €15m (£12m) valuation has prevented the deal from happening, with Silva's shared ownership among third parties also complicating matters.
With Luka Modric a long-term absentee and James Rodriguez sidelined until January, Real Madrid are expected to increase their offer. However, Spanish daily Marca claim Arsenal have already tabled a better offer for Silva that meets the Brazilian champions' demands.
Arsenal manager Arsene Wenger is under pressure to add a holding midfielder to his squad in January but, given Silva's preference for a move to the Spanish capital, the club may be forced to look elsewhere.
"Of course I'd like to play for Real Madrid, it would be an honour," Silva said. "But for that to happen, an agreement between the clubs would need to be put in place first. I'm a Cruzeiro player and have so much respect for my club. If a club like Real Madrid came along, I wouldn't turn them down."
Silva also recently admitted he is unsure whether Real would like to bring him to the club immediately or allow him to remain in his homeland for Cruzeiro's Copa Libertadores campaign.
Real boss Ancelotti has previously ruled out the possibility of January signings but injuries to key players are likely to force their hand.
"It is true that we are interested in Lucas Silva but also in other players. If we need him we will evaluate after the Club World Cup," Ancelotti said.
"We have to wait for the Christmas period for the recovery of Modric, Khedira... and then make a decision."
Germany international Christoph Kramer is reportedly Ancelotti's preferred option but the 23-year-old favours a stay in Germany, where he is on a season-long loan at Borussia Monchengladbach from Bayer Leverkusen.
"Although I am enjoying myself here I have a contract with Leverkusen and I'll be back there in the summer, as far as I know at the moment," the midfielder told the German press on Wednesday.