Gremio president Alberto Guerra says they're yet to field a formal offer for Bitello.
Arsenal chief Edu has had Bitello watched this past year and talks with Gremio have kicked off.
Edu dispatched a delegation to Porto Alegre last week to open negotiations with Gremio for the 23 year-old.
Gremio are seeking 10m to sell Bitello - which falls inside Edu's transfer budget. Midfielder Bitello has a deal with Gremio to 2025.
Guerra said: "There are a lot of people watching Bitello, but there is no proposal, even to reassure our fans, at the moment."