Arsenal have blocked Emile Smith Rowe from leaving the club, rejecting bids from Fulham and Crystal Palace, according to Sky Sports.
Both clubs are now considering whether to make an improved offer for the 23-year-old midfielder.
Smith Rowe has been linked with a move due to limited playing time under manager Mikel Arteta. Last season, he made only three Premier League starts after dealing with injury issues.
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The player is reportedly open to leaving if it means securing regular first-team football away from Emirates Stadium.