Real Madrid have offered Vinicius Junior a salary increase that could see the Brazil forward earn £18.5million (€22m) a year, amid interest in the player from Arsenal.
Arsenal made initial enquiries into Vinicius last week, with manager Mikel Arteta insisting the Premier League winners will be "very ambitious" during the summer transfer window.
Daily Mail Sport reported on Monday that Real Madrid had responded by re-opening contract talks with Vinicius after earlier discussions stalled last season. According to ESPN, the offer on the table represents a rise of almost £4m on his current deal, which is believed to pay him £14.9m per season.
Vinicius is not thought to have an issue with the salary offered by club president Florentino Perez, but the two parties have yet to agree a potential signing-on fee. It is also not yet clear how long any new contract would tie Vinicius to the club, with his current deal set to expire in less than a year.
Should Vinicius not sign a new deal, Real Madrid would risk losing one of their marquee players on a free transfer, with the possibility of him signing a pre-contract agreement from January. The player is thought to view any deal with Los Blancos, where he has played since 2018, as the defining contract of his career and recognition of his efforts for the club that have made him a Ballon d'Or contender.
Vinicius returned to join his team-mates at their pre-season camp on Monday to undergo start-of-season medical tests and train for the first time under new manager Jose Mourinho.
Arsenal's transfer plans
Arteta has remained bullish about his plans for the rest of the window, following the £34m signing of Christos Tzolis from Club Brugge. "We expect to have movements in the next few weeks, obviously," Arteta said after Arsenal's pre-season friendly against Girona.
"We want to get better like anybody else, and you can see the transfer market and our opponents... We won't sit still and we are very ambitious with what we are doing. The margins are very small. Because we want to get better and the level is going to increase. We need to increase the competition internally. We need to make sure we identify the things that we don't have in the team."
Arsenal have already been rebuffed in their pursuit of Bruno Guimaraes, with Newcastle turning down a bid from the north London club.
