Arsenal's £16million valuation of Kieran Gibbs has cooled Watford's interest in the England left-back, according to SportsMail.
The Hornets had wanted to add the 27-year old defender to their squad before the transfer deadline but are refusing to match Arsenal’s asking price.
An injury-plagued career as well as Nacho Monreal's form means Gibbs is unlikely to play regularly this season and has less than 12 months on his current deal, meaning he can leave for nothing at the end of next season.
However, Arsenal are still demanding a high price for Gibbs despite being deemed surplus to requirements and Watford boss Marco Silva has called of the bid.
Arsenal have reportedly started a drive to offload a host of their fringe players in a bid to raise transfer funds and ease the burden on their wage bill but – apart from the £10million departure of Wojciech Szczesny – their attempts have hit the skids due to players’ wage demands and Arsenal’s valuations.
Jack Wilshere, David Ospina, Carl Jenkinson, Lucas Perez, Calum Chambers and Mathieu Debuchy can all leave the club this summer.
Gibbs moved to Arsenal when Wimbledon disbanded in 2004 to become Milton Keynes Dons and has played as a left winger and also in the centre midfield position.