Arsenal held initial conversations about a potential move for Tottenham Hotspur signing Mathys Tel, but decided against going ahead with a deal.

On transfer deadline day, Tottenham Hotspur completed the signing of Mathys Tel from Bayern Munich on an initial loan with an option to buy.
Arsenal had been linked with the player earlier in the window, and appeared to be one of the final teams remaining in the race after Tel rejected Spurs’ initial approach.
But Simon Collings reported on deadline day that whilst Arsenal held exploratory conversations over a move for Tel, they decided not to advance it beyond that.

Arsenal’s hesitance to do a deal for the teenager likely stemmed from the significant finances involved.
A conversation with Ange Postecoglou ultimately convinced Tel to sign for Spurs, and Christian Falk reports that they’re paying a loan fee of up to €10m (£8.3m). The club are also paying Tel’s salary in full.
After that, Spurs will have a €60m (£49.9m) purchase option, taking the total potential cost of the signing up to more than £58m. That’s significantly more than Arsenal were willing to pay for a proven striker in Ollie Watkins, and Spurs are investing it on a player with no club goals this season.

Spurs were desperate, given Dominic Solanke’s injury absence and the team’s current position at 14th in the table. If they don’t start winning games immediately, the prospect of European football next season will evaporate.
Arsenal are in a much stronger starting position. Whilst that has led many to suggest that they need to invest and capitalise while they have the chance to win trophies, it also means the club hierarchy keep opting to stay patient until their top targets become available.
Tel was clearly never a priority for Arsenal, and we’ll see whether that turns out to be a good thing or not.