After reports yesterday indicating that Arsenal would have to pay £40m yesterday just to make a bid for striker Luis Suarez, now new reports say that the price has went as a high as £55m after Suarez dropped his pursuit of arbitration as a means of leaving for less.

Boss Arsene Wenger indicated he was ready to wait to see the outcome of the contract dispute between Suarez and Liverpool, but with the striker finally conceding he will not approach the Premier League to arbitrate, Liverpool now has no obligation to sell him at any price.

A source close to the club's American owners explained on Tuesday that lawyers have examined Suarez's contract in detail, and have concluded there is no requirement to sell in the event of a bid topping £40m, merely a commitment to inform the player of any such approach.

"We are 100 per cent confident - there is absolutely no obligation to sell and that is very clear," the source explained.

"We've all examined the clause in detail. All it obliges is good faith negotiations about Luis's future."

Although Suarez has indicated to Arsenal that he is prepared to agitate for a move, Real Madrid remain to be his preferred option.

Madrid is currently consumed in their pursuit of Spurs' Gareth Bale, but still have shown interest in Suarez. If they can raise sufficient funds, Real could still bid later in the transfer window, and Liverpool would be more inclined to allow that deal to happen.

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