West Ham boss David Moyes is keen for Declan Rice to join Chelsea this summer as part of a move to sign Conor Gallagher, according to The Sun.
However, Rice has made it clear he does not want to return to Chelsea and has his heart set on a move to Arsenal.
The report states: “West Ham are resigned to the fact that Declan Rice has set his heart on a move to Arsenal.
“And plans to start a bidding war with Chelsea, Manchester United and Bayern Munich are likely to be shelved by the Europa Conference League winners.
“Hammers boss David Moyes is understood to prefer a deal with Chelsea involving Conor Gallagher in part-exchange.
“But Rice has made it clear that he is not interested in a return to the club who released him at the age of 14.
“That has left the way clear for Arsenal to complete their priority signing of the summer and negotiations with West Ham are now at an advanced stage.
“The Gunners are looking to pay a club record £90m for Rice, while the Hammers value him at £110m.
“It is expected that the two clubs will agree on a £100m compromise, with the potential for a further £10m in bonus payments and add-ons.”