Real Madrid are open to the possibility of Vinícius Júnior leaving the club if there's no agreement on a new contract for the player, sources have told ESPN, with Madrid having no plans to increase their last renewal offer.
Vinícius is due to return to Valdebebas for preseason training on Monday after his post-World Cup holiday with doubts persisting over his future, and just a year left on his current deal.
Sources told ESPN that no date has yet been set for a meeting between Madrid executives and the Brazil international's representatives, with the club believing it is now down to the player to decide whether to sign a new contract or seek a move elsewhere.
Arsenal believe they would be in a strong position if Vinícius were to opt for a move, a source told ESPN, although a source close to the player said that there had been no contact with the Premier League champions.
ESPN has reported that Arsenal are interested in the winger and have been studying the feasibility of a deal.
There has been a long-term standoff between Madrid and Vinícius's representatives over a new contract.
Last season, ESPN reported that the player was in no hurry to renew and that there would be no progress in talks until after the World Cup.
Vinícius, 26, joined Madrid as a teenager in 2018 and has become one of the world's best players, scoring in two Champions League finals and finishing runner-up in the 2024 men's Ballon d'Or.
He became unhappy last season under former coach Xabi Alonso -- reacting angrily to being substituted during a Clásico at the Bernabéu -- and the team have now gone two seasons without landing a major trophy.
Madrid have been active in the summer transfer market, with forward Carlos Espí joining this week.
ESPN has reported that they are close to confirming the signing of winger Yan Diomande, and are optimistic about signing Rodri from Manchester City.
Madrid play Fiorentina in Austria on Saturday in their first pre-season friendly, after training ground games against Alcorcón and Leganés.
Summer signings Denzel Dumfries and Espí have both been included in the squad.
Information from ESPN's Alex Kirkland and Rodrigo Faez was used in this report.