Mauro Icardi is set to sign a £4.3m-a-year contract at Inter
The Gunners are said to have discussed terms with Icardi’s wife and agent over a summer transfer.
Inter appeared reluctantly open to selling Icardi as they attempt to balance the books to stay within Financial Fair Play regulations.
But reports in Italy claim the San Siro giants have found the funds to block Icardi’s proposed switch.
According to newspaper Gazzetta dello Sport, Nara has come to an agreement with Inter that will see the club pay him £4.3m a season.
Arsenal are desperate to land a striker this summer but have already fallen short in their pursuits of Jamie Vardy and Alexandre Lacazette.
Nara is said to have twice flown to London to try and broker a deal that would have earned Icardi £5.8m a year.
Mauro Icardi - 5 things you need to know
But Arsenal are now unlikely to match Inter’s release clause if Icardi pens his new terms.
Gazzetta claim the Argentine, 23, has been offered a five-year contract at the Serie A club and will more than double his salary.
While his release clause is said to be as much as £86m (€100m), the exact figure has not been revealed.
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