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The first offer of the Gunners, in the amount of £ 15m, was rejected by the Scottish champions, who also rejected a second bid of £ 18m.
Arsenal has then increased its offer to around 25 million pounds in recent days, but that too has been denied by Celtic.
The Bhoys were not impressed by the terms of the agreement, which provided for many additional payments and relatively little money in advance.
Despite their three rejections, Arsenal still hopes to find the left back this summer.
However, Unai Emery may have to first reduce its workforce to raise funds for any new signing, Arsenal 's current transfer budget being only 40 million pounds.
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