Arsenal have pulled out of the race to sign Moises Caicedo because of the money that would be involved in signing the player.

This paves the way for the Brighton midfielder to join Chelsea instead.

The Gunners tried to sign Caicedo in January but saw a club-record bid rejected by the Seagulls.

After his transfer request was denied, Caicedo was quickly reintegrated by manager Roberto de Zerbi. However, the 21-year-old struck an agreement that he would be allowed to leave in the summer should Brighton receive a suitable offer.

According to Teradeportes in his native Ecuador, Caicedo had been keen on a move to the Emirates, and personal terms had already been agreed.

However, with Brighton demanding over £80 million for a player with only 18 months of Premier League experience under his belt, it is believed that Arsenal were unwilling to enter into a bidding war with Chelsea.

Arsenal is set to divert a sizable portion of their transfer budget into trying to sign West Ham captain Declan Rice.