The Gunners are expected to be without Aaron Ramsdale next season after he lost his starting spot to David Raya last term, and they want a solid cover for the Spain international.
However, Arsenal believe the fee Wolves want for Bentley is high, and manager Mikel Arteta is now looking at alternatives.
The Midlands club are offering the 31-year-old terms to stay at Molineux, and while that has not put off the Gunners boss, he is starting to explore other options.
Arsenal recently made a renewed offer of £300,000 for Bentley after their opening bid of £50,000 was turned down by Wolves, but it was also knocked back as the Midlands outfit have quoted £1 million for the former Bristol City goalie.
Arsenal are not ready to go that high for a reserve keeper and a deal is unlikely to be struck if Wolves refuse to reduce their asking price.
Both clubs had appeared close to agreeing on a compromise, but things have changed and the Gunners could now move on to other targets.
They have already snapped up 18-year-old Tommy Setford from Ajax and have used Karl Hein in goal in their two pre-season games against Bournemouth and Manchester United with both Raya and Ramsdale yet to resume after reaching the final of the European Championship a fortnight ago.
Academy goalkeeper Lucas Nygaard also travelled with the team on their tour of the United States but Hein is expected to continue in goal when they face Liverpool on Thursday.
Arsenal play Bayer Leverkusen next Wednesday (August 7) before coming up against Lyon in the Emirates Cup final on Sunday (August 11), and both Raya and Ramsdale are expected to be with the team by then in preparation for the Premier League opener against Wolves on August 17.
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