Robinho has been on duty with Brazil at the Confederations Cup

There are reports in the Spanish media the Gunners have made a �14m offer for the highly-rated Santos striker, 21.

"He is a player very much in demand and his price has gone up in recent weeks," said Juan Figer, the Brazilian's agent.

"It's true that Arsenal are interested, but it's not a question of it being a race. The fact is that Real Madrid have an advantage."

Robinho's transfer from Santos to the Bernabeu appeared to be close to being finalised last week with the move set to be confirmed after he had fulfilled his commitments with Brazil at the Confederations Cup.

However, Figer, who owns 40% of Robinho's rights, has warned that Santos, who own the remaining 60%, could hold out for more than the �11.3m Real Madrid offered.

"At the time I said Madrid should have closed the deal and not just assured themselves an option on the player and now it is going to cost them a lot more time and effort to sign him.

"Although they only have 60% of his rights, Santos are calm. He has a buy-out clause of $50m (�27m) and a contract until the end of June 2008.

"There is an agreement between Real Madrid and Robinho, but he has a contract with Santos and he has become a state matter in Brazil.

"He is the best player in the Brazilian league and nobody wants to see him leave the country, not even the president."