Joel Campbell has had a series of loan moves away from Arsenal |
The Costa Rican has had several loan spells away from the Emirates after needing to gain a work permit.
Following an impressive World Cup with his national team last summer, Campbell had hoped to be a regular under Arsenal after successfully gaining the permit.
After making just four appearances, he was sent out again on loan to Villareal in January where he struggled.
According to Italian website Tuttosport, Palermo president Maurizio Zamparini flew into London and bid around £4m for Campbell.
But Zamparini returned to Italy after being told by Arsenal that they want at least £7m for the attacker.
The report adds Palermo are likely to return with an increased bid next week.
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