The 21 year-old has fast become one of the most sought after players in European football and Arsenal have been long-standing admirers of the forward.
Palermo officials valued the Argentine at £30m to ward off any potential buyers but director of sport Dario Baccin has conceded that their efforts to keep him at the club have all been in vain.
‘He has rejected all our proposals for a contract renewal, so at this stage it’s safe to say he will certainly leave’, he said.
The news will be welcomed by Arsene Wenger, who had been linked with bringing Dybala to the Emirates for quite some time, and will now have to see off the likes of Chelsea and Juventus to bring him in.
By Phil Wellbrook