Arsenal are baulking at Everton's asking price for defender Phil Jagielka.

The Times says Everton's financial position has been squeezed because their bank is likely to reduce their overdraft facility by £5million to about £20million.

The Merseyside club could sell three players to raise money, including Jagielka, although Arsenal are unwilling to match the £20million valuation of the England defender.

Jagielka is also reluctant to move to the Gunners.

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