Palermo president Maurizio Zamparini has revealed that Juventus are currently in pole position to sign Paulo Dybala after making a €35m bid for the 21-year-old winger.
The winger has attracted interest from a lot of clubs across Europe but Zamparini insists that he will only sell should a club meet his €40m valuation, which is expected to come when the real transfer business starts in the summer.
The Gunners are looking at the player as a replacement for Theo Walcott, whose contract with the Gunners expires next year and any talk of an extension has come to a standstill over the player's wage demands.
However, Zamparini insists, despite Wenger's denials, that the Gunners are still in the mix and the situation may change in the coming days should a club supersede Juventus' bid for the exciting youngster.
Dybala has scored 13 goals in the league this season and is renowned for his pace and dribbling ability and is believed to be a step up from what Walcott has in his repository.
However, any move for the player would depend on the situation unfolding behind Raheem Sterling, with the Gunners mulling a swap deal where the 20-year-old would make a move to the Emirates, with Walcott making the return journey to Anfield.
"Right now, Juve are in pole position. They want to close the deal in a week. But, of course, I want the best possible deal. Dybala is being auctioned," Zamparini told France Football.
"The Bianconeri have offered me €35m, but I want €40m or more. I'm also dealing with Arsenal.
"Paris Saint-Germain have requested information from Dybala's agent, they know the player is on the market.
"PSG are interested just as they are at Arsenal, Manchester City, Juventus, Inter, Roma and Napoli," he added.