Arsenal, Chelsea and Manchester United have been dealt an early blow in the summer transfer market with Benjamin Sesko set to sign a new contract at RB Leipzig, sources have told ESPN.
The 21-year-old had attracted interest from across Europe after scoring 18 goals across all competitions last season with multiple Premier League sides considering triggering his €65 million ($69.8m) release clause.
ESPN reported in April that Sesko had been scouted repeatedly by Arsenal, who were thought to be leading the race prior to talks between the striker and Leipzig over recent days.
Sources have said that although nothing is finalised, negotiations progressed well and Sesko is now expected to remain in Germany for at least another season on improved terms, with the release clause replaced by a fresh agreement.
Sesko wanted his future resolved before Euro 2024 gets underway -- the Slovenia international's first involvement will come against Denmark on Sunday -- and one source has suggested an official announcement could come in the next few days.
Arsenal will now have to switch their attentions elsewhere with Sporting CP's Viktor Gyökeres, Newcastle's Alexander Isak and Bologna's Joshua Zirkzee among the possible alternatives.
Chelsea have long held an interest in Napoli's Victor Osimhen but doubt has been cast over the club's ability to pull off another expensive deal as they seek to maintain compliance with the Premier League's Profit and Sustainability Rules.
Moves for Gyökeres and Isak would also be costly for Arsenal, who are keen on adding a versatile forward to their ranks. Zirkzee has a €40m release clause.