Arsenal want Danilo and are ready to go back in with a new bid worth around £26million for the Palmeiras star in January.
The Gunners have made an outstanding start to the season, dropping just five points in their 11 Premier League games.
Mikel Arteta’s men may not launch a title charge but a top four finish looks well within reach for them this season.
Edu may still need to bring in some new faces during the January window though with a midfielder on the wish list.

Arsenal want Danilo
Thomas Partey regularly picks up knocks, Mohamed Elneny is out for the long term and Albert Sambi Lokonga is still learning to play that sole holding role in Arsenal’s midfield.
Arteta may well prefer to use Lokonga further forward and bring in another holding midfielder.
One of the key names mentioned in recent months has been Palmeiras talent Danilo.
Goal reported in August that Arsenal had launched a £20million move for Danilo but no move was completed.
Palmeiras didn’t want to sell at that point and the London Evening Standard noted in September that Arsenal were still keen on a January move.
Danilo has an £86million release clause in his contract for any foreign clubs but Palmeiras won’t get anywhere near that figure.
The Sun now claim that Arsenal think Palmeiras will sell in January and the Gunners will offer £26million for him.
Danilo, 21, has been hailed as ‘dynamic’ and ‘the most effective player in South American football’ by expert Tim Vickery.
12 goals and 10 assists in 137 games isn’t bad for a defensive midfielder and Edu may feel that he can be another Gabriel Martinelli.
Martinelli wasn’t all that well known outside Brazil before Edu pounced and whilst Danilo is more established, this would still be a signing with the future in mind.
With the Brazilian season ending soon, the time may be right for Danilo to leave in January – and Arsenal look to be in position to strike.
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