Arsenal have told Barcelona that they cannot afford to sign Philippe Coutinho on a permanent basis, and are only willing to take him on loan, according to CaughtOffside.com.

The website says that Barca want to sell the former Liverpool star for £70m, but the Gunners’ limited transfer funds means such a bid is out of the question.

Even if Coutinho is allowed to leave on loan once again, there is another red line which the London club have laid down in negotiations.

The Brazilian international is currently on £250,000 a week, a salary which Arsenal are unwilling to pay in full. With that being the case, Barcelona would need to pay at least some part of his wages in order for a move to the Emirates to go ahead.

Whether that is realistic, it seems unlikely, but it remains to be seen whether other interested clubs, such as Chelsea and Tottenham, would be prepared to offer better terms for Coutinho.