Perez is set to leave the Emirates this summer just a year after arriving from Deportivo La Coruna.
The Spaniard didn’t get much of a look in last term and Arsene Wenger is ready to let him go
But interested parties Newcastle and Brighton have been put off by the club’s £20m valuation, The Sun report.
Brighton are now out of the running, but Newcastle are interested in a loan deal.
The Magpies have looked at Liverpool’s Danny Ings but he could now stay on Merseyside.
Perez won’t be staying at his club though.
When quizzed if the 28-year-old frontman would be off this summer, Gunners boss Wenger said earlier this month: “Yes, because we have a congestion of strikers.
“I don’t like to lose him because, for me, he’s a top-quality striker but we have many strikers.
“At some stage, too much competition is not competition anymore. You cannot give the chance to everybody, so if he finds a satisfying solution at least for a short time, he will do it.”