Fulham have seen an initial bid for Emile Smith Rowe rejected by Arsenal.
The Cottagers are understood to have offered around £30million plus bonuses for the 23-year-old.
After seeing their first offer knocked back by the Gunners, Fulham are now considering making an improved proposal.
Crystal Palace are also keen on the England international, although he is one of a number of midfield options being looked at by the Selhurst Park club.
Smith Rowe is under contract with Arsenal until June 2026.
However, he wants regular first-team football and will likely have to leave the Emirates Stadium to get it.
Smith Rowe was capped three times by England in 2021 and 2022, scoring one goal.
He has made a total of 115 first-team appearances for Arsenal since his debut in 2018, scoring times.
However, he started just three Premier League games last season.