David Ornstein reports that the Arsenal hierarchy remain very keen on Youri Tielemans, but there are various reasons why a deal is on the backburner.

Speaking on the FIVE YouTube channel, David Ornstein gave his understanding of a potential Arsenal move for Youri Tielemans this summer, following the widespread reports of cooling interest in a deal.
Ornstein claims Arsenal’s key decision-makers are still “all in” for Tielemans, and they’d potentially like to sign him this summer. But other deals are taking priority at the moment.
Arsenal are arguably in a stronger position than Leicester City are with Tielemans, as Ornstein points out.
The Gunners aren’t in a hurry to push through a deal, and they don’t seem to be competing with any serious rival interest. Tielemans’ contract runs out in 2023, and Leicester are keen to sell to generate funds for their summer business.
Leicester’s valuation thus has to be sufficiently attractive for Arsenal to pay the money instead of just waiting to try and bring Tielemans in for free next summer.
The longer the summer goes on without any bids, the weaker Leicester’s position gets.
In the meantime, Arsenal have other deals to be getting on with (both in and out), which will establish how much money they have to play with.

It just makes sense for the Tielemans deal to take a backseat whilst Arsenal focus on much more competitive transfers like the potential arrival of Raphinha or Gabriel Jesus.
Whether or not a deal will go ahead later in the window isn’t clear right now. Arsenal are clearly fans of Tielemans, but they aren’t in a rush and they have no reason to be.