Real Madrid are dropping their price for Martin Odegaard.
ABC says Real Madrid are prepared to lower their asking price for Odegaard this summer.
Arsenal will only have to pay £34m up front, but Los Blancos want £8.5m in potential add-ons as well as a buy-back clause.
However, Arsenal will only pay £25m for the Norwegian, who spent the latter half of last season at the Emirates.
For his part, Odegaard is prepared to leave Madrid this month.