Arsenal have made an offer in the region of £10m for Newcastle midfielder Yohan Cabaye.
The Magpies are yet to formally reject the offer for the 27-year-old but they view it as derisory and plan to turn it down.
The France international joined Alan Pardew's side from Lille two years ago and has received stellar reviews in the Premier League, attracting interest from Manchester United.
His form has attracted interest from Arsene Wenger, who has only made one signing this summer, but he was expected to start against Manchester City last night.
Arsenal fans booed the team after their humiliating 3-1 loss to Aston VIlla at the Emirates Stadium on Saturday, urging Wenger and chief executive Ivan Gazidis to spend some money.
Wenger now seems to have sprung into life following the criticism, reportedly weighing up a £35million bid for Swansea duo Michu and Ashley Williams.
The Evening Standard believes Arsenal will bid for forward Michu and defender Williams, with the latter having been linked with the club in the past.
The situation is similar to how Wenger found himself at the end of the transfer window in August 2011.
His Arsenal side had just been beaten 8-2 by Manchester United, forcing the Frenchman to buy Park Chu-Young, Mikel Arteta, Per Mertesacker, Andre Santos and Yossi Benayoun on loan.
Michu’s current deal at the Liberty Stadium runs until 2016 after an impressive start to last season convinced Swansea chairman Huw Jenkins to tie down the 27-year-old in January, just six months after signing him from Rayo Vallecano for £2million.
Swansea manager Michael Laudrup is reportedly still looking for forward signings after capturing Wilfried Bony for £12million in the summer, and may opt to cash in now to invest in the squad rather than risk his valuation dropping next summer.
Arsenal had a £6million offer for Williams rejected earlier this month, but a deal at around £10million seems more likely.
A supporters' group sent an angry open letter to Gazidis detailing the broken promises regarding transfer dealings, while the Arsenal Supporters' Trust insisted Wenger should not be given a new contract.
The need for players meanwhile, also comes in the wake of an injury crisis at the club.
The Gunners take on Fenerbahce in a crucial Champions League play-off on Wednesday and could have as little as eight first team players available because of injury.
Aaron Ramsey, Bacary Sagna, and Kieran Gibbs are all doubtful while Mikel Arteta and Alex Oxlade-Chamberlain are definitely out.
While Arteta is expected to return by the end of September Arsenal are sweating on a the results of today’s scan to assess the extent of Oxlade-Chamberlain’s injury, with fears that the England international could be out for six months.
Whether the club return with another bid for Cabaye is yet to be seen, but it is unlikely any move could be completed before the trip to Turkey.