Arsenal's £40 million offer for Real Madrid forward Karim Benzema has been laughed off by the Spanish side, according to a report from Diario Gol.
Gunners boss Arsene Wenger is a long-time admirer of the France international and the London side are looking to take advantage of Real president Florentino Perez's wish to sell him.
Arsenal will have to up their offer, however, with Real holding all the power in negotiations.
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