Celtic have knocked back Arsenal's improved offer for Kieran Tierney, according to Sky Sports Scotland.
The Gunners went back in with a fresh offer for Tierney on Friday, lodging a proposal with the Bhoys worth in the region of £25m.
Arsenal were hoping that the bid would be enough to convince Celtic to let Tierney go, but they have now suffered disappointment, with the offer rejected.
The ball is back in Arsenal's court over Tierney, with the Gunners now having to come back with a further bid.
It has been claimed that Tierney is hoping to complete a move to the Emirates Stadium this summer.
Unai Emery's side have been struggling with a reduced transfer budget this summer after failing to qualify for the Champions League.
In addition to Tierney, the Gunners have been working on landing other targets.
Celtic have already signed another left-back, but are in no mood to let Tierney go unless they judge the terms of the deal to be right.
