The German sports news outlet report that an initial €50m offer from the Gunners was turned down by the Bundesliga side. Gazidis is said to be looking to make a revised offer of €60m, but it seems this will also be rejected with Dortmund holding out for more than €70m.
The €10m (£8.8m) difference between the two sides could yet be closed by a compromise proposal, but it looks as though Dortmund will be driving a hard bargain for Aubameyang.
The Gabonese international was left out of Dortmund’s match day squad for the German club’s 1-1 draw against Hertha Berlin on Friday, with intense speculation surrounding the future of the 28 year old.
Aubameyang has scored 21 goals in all competitions so far this season, and reports have suggested that the German side may want Gunners striker Olivier Giroud as part of the deal to make up for the loss of a key player.