Uruguayan striker Abel Hernandez was the subject of a bid worth €18 million from Arsenal, according to his agent, with Palermo rejecting the offer on the grounds that it wasn't high enough.
The Gunners purchased two strikers last summer, in the form of Park Chu Young and Gervinho, but Hernandez's agent Vicenzo D'Ippolito insisted that their first choice would have been to bring in 21 year old Hernandez.
And after scoring four goals in 13 appearances for Palermo this season, D'Ippolito insists that he won't go to Arsenal for any cheaper than the asking price.
"Last summer Arsenal bid for the boy. It was for 18m Euros but the club rejected," he said, as reported by Talksport.
"Wenger wanted him after the departure of Nasri and Cesc Fabregas, but could not close the deal.
"Now there are rumours that Roma are interested in him but there is a minimum price established by Palermo and the president will not bring it down."
Arsenal may well be in the market for another striker come summer, with Marouane Chamakh often remaining coy on whether he sees his future at the Emirates while receiving such limited game time.
The Gunners brought in legendary hitman Thierry Henry in the January transfer window, and the New York Red Bull star shone alongside Robin van Persie. While Gervinho continues to find his feet, it would appear that more firepower up front could be exactly what Arsene Wenger is looking for when the next window rolls around.
Reports have speculated for some time now that Arsenal have been keeping track of the South American, but Wenger does not often give into pressure to pay sky high prices for players.