Arsenal and Valencia have reached an agreement over the £17m transfer of Juan Mata, according to reports from Spain.
The Spain international will now discuss personal terms with the Gunners, after he rejected the chance to join Tottenham Hotspur.
But Valencia president Manual Llorente insists the club have not received a formal offer for the left-winger and remains adamant he is going nowhere.
"Mata is in Lisbon and he is still our player. I think he will remain here, as we have not received anything," Llorente told reporters.
"Those who want to stay in Valencia will do so and those who want to come here will come," he added.
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Mata, 22, is viewed by manager Arsene Wenger as a replacement for Cesc Fabregas, with the future of the Arsenal captain still uncertain.
Fabregas was left out of the Arsenal squad for this weekend's Emirates Cup, with Arsene Wenger determined not to allow the on-going saga to disrupt the club's pre-season plans.
The Spain international has not featured in any of Arsenal's pre-season matches, and has trained apart from the squad, much to Wenger's chagrin.
"He [Fabregas] is coming back from an injury and is not settled with us. You know all the speculation which is around his position, that has to be sorted soon," Wenger told reporters at the weekend.
"There is only one deadline [to sell Fabregas], it is on 31 August. The other deadline is for us to get everybody focused - the players who are really committed to the club, my energy and my focus goes on them. I cannot help the other situation, because it does not only depend on me, it depends on the players and on the clubs."
Barcelona remains Fabregas's most likely destination, despite reported interest from AS Roma.
Over the weekend, club president Sandro Rosell claimed Fabregas is their "unique and final objective" - but are asking the 24-year-old to waive his £4m signing-on fee as the club struggle to meet Arsenal's £40m asking price.
Pre-Season Struggles
Arsenal fans were treated to a taster of life without their talismanic captain on Sunday; it looked eerily familiar.
