Roma director of sport Walter Sabatini has revealed the club have pulled out of a pre-contract agreement to sign Velez Sarsfield midfielder Ricardo Alvarez for €15 million.
Alvarez, 23, is said to have attracted interest from a number of clubs throughout Europe, but Palermo president Maurizio Zamparini recently claimed "he has already signed for Arsenal".
It remains to be seen whether a move to Emirates Stadium will take place, but Sabatini has said Roma decided not to pursue the deal as he believes the player is overpriced.
"It's true we had a pre-contract agreement, but €15 million for Alvarez is a bit much," Sabatini told Teleradiostereo. "I believe a player should be paid what he is worth. Alvarez was born in 1988 and has room for improvement, but it's also fair to say he hasn't played very much in the first team."
Velez Sarsfield president Fernando Raffaini told ESPN Radio en Rivadavia on Friday that he was ready to sell Ricardo Alvarez for "financial peace of mind" but added: "Everything will depend on the will of the player."
Inter Milan are said to be ready to pay €15 million to sign Alvarez.