Despite Magpies boss Rafa Benitez insisting he wants the French international to stay, the Toon hierarchy are resigned to losing Sissoko this summer after he impressed for France during Euro 2016.
The 26-year-old has made it clear he wants to stay in the Premier League, with Tottenham, Liverpool and Crystal Palace, managed by his former Newcastle boss Alan Pardew, all showing interest.
And now Arsenal have also showed interest in signing Sissoko, however talkSPORT understands the Gunners are not prepared to meet Newcastle’s £35million valuation.
The Tyneside outfit bumped up their asking price following the player’s performance in the Euro 2016 final for hosts France, but Arsenal’s valuation is nearer the £20m mark.
Bundesliga giants Borussia Dortmund were thought to be in pole position to land the Frenchman and looked prepared to match the Championship sides valuation.
But Sissoko recently told France Football that his ‘priority is to stay in England’, meaning he is likely to choose a Premier League club over a move to Germany.
Sissoko joined Newcastle from Toulouse in 2013 and has made 117 appearances scoring 11 goals.