Arsenal fears they will lose Martin Odegaard to Premier League rivals, Chelsea as Real Madrid will demand £50 million for the player this summer, the Daily Star reports.
Odegaard arrived at the Emirates in January for a six-month loan.
The Gunners paid a fee of £1.8m but did not agree to an option to buy clause in the deal.
Real valued Odegaard at £30m at the time but after his outstanding displays under Mikel Arteta, Arsenal is worried the LaLiga giants will make them cough up £50m to bring him in on a permanent deal.
It is believed that the 22-year-old Norwegian is keen to continue in London, but it remains to be seen which of the teams in the city he might be playing for in the 2021/2022 season.