Arsenal break off transfer talks for teenage Croatian star

Arsenal have broken off negotiations over the proposed transfer of Mateo Kovačić, after baulking at Dinamo Zagreb's asking price for the midfielder.

The Gunners are long-term admirers of the exciting teenage playmaker, and have followed his development since the age of 13, when he rejected a number of Italian and German clubs in favour of a move to Zagreb.

He has since been watched a handful of times by Arsenal's chief scout Steve Rowley, including on his first-team debut against Hrvatski Dragovoljac last season.

All in all, Kovačić made eight appearances and scored two goals as Dinamo won the league last term, leading to mass interest from clubs all over Europe.

Sporting Director Zoran Mamić told the Croatian media this week he had held talks with Arsenal, but discussions had hit a deadlock over the transfer fee, with Zagreb believed to be looking for around £10m for the 17-year-old.

Mamić said: "A few days ago I talked with some of my friends from Arsenal. I told them Mateo Kovačić is in good form, that he is playing well. They say that Arsenal can't join this 'dance of millions' for him."

Kovačić is a current Croatia Under-17 international, and has been compared to Tottenham midfielder Luka Modrić.