Arsenal have further talks scheduled for a Joao Felix loan move, with Atletico Madrid rejecting an offer from Manchester United.

Portuguese outlet O Jogo report that Manchester United made an offer to Atletico Madrid of a €4m (£3.5m) loan fee, plus the full payment of Joao Felix’s salary, to take him until the end of the season.

But Atletico turned down the offer, and United now seem to be pursuing a move for Wout Weghorst instead.

That opens the door to Arsenal, with Ben Jacobs of CBS Sports reporting that the Gunners have further talks scheduled over a loan move.

Atletico’s demands remain high, with no package agreed yet and the hope that they can pit potential suitors against each other.

But Arsenal want a loan fee around £5m and an option to buy below £70m to do a deal. It doesn’t sound as if they have any intention to go near Atletico’s reported €15m (£13.2m) asking price for the loan fee.

David Ornstein reported that Atletico want €15m and Felix’s wages would cost another €6m. No club is willing to pay that amount, despite relatively widespread interest in his signature.

Ornstein claims Arsenal are looking to sign both Mykhaylo Mudryk on a permanent deal and Felix on loan this month, as they try to reinforce their attack in the wake of Gabriel Jesus’ injury.

In the meantime, Felix remains with Atletico. The forward scored the opening goal for the side in their last league game against Elche, heading home from close range.

Speaking after the game, Diego Simeone said: “While he’s here, I’ll try to get the best out of Joao Felix for the club. Then we will see what’s gonna happen.”

Felix wasn’t involved as Atletico played against lower-league side Real Oviedo in the Copa del Rey on Wednesday, but he’s likely to be back involved against league-leaders Barcelona on Sunday.