Arsenal have reportedly been told that they will need to pay £20m to secure Mario Mandzukic's services this summer.
Mandzukic is expected to leave Bayern Munich before the start of the season after his relationship with Pep Guardiola broke down towards the closing stages of the previous campaign.
The Gunners have been repeatedly linked with a move for the Croatian in recent months as Arsene Wenger attempts to bring in competition for striker Olivier Giroud.
According to the Evening Standard, Arsenal would prefer to pay less than the fee quoted by Bayern for Mandzukic, who is also rumoured to be attracting interest from Inter Milan and former club Wolfsburg.
Reports have suggested that Jackson Martinez, Alexis Sanchez and Mario Balotelli are all on Wenger's list of potential targets.
