It's been gathered that Seagulls have rejected the offer despite the midfielder interested in joining the Gunners.
Arsenal is still interested in Caicedo and debating whether to re-enter with a stronger offer, despite the south-coast club's insistence that Caicedo is not for sale during this January transfer window.
Whether or whether they acquire Caicedo, according to Reportminds Blog, Arsenal is still interested in signing Declan Rice in the summer.
Caicedo was the target of the Gunners' guaranteed £60 million proposal. Brighton's acquisition of Marc Cucurella from Chelsea for an initial £57 million plus add-ons last summer is the largest transfer fee in the club's history.
Chelsea is also interested in the midfielder, who Brighton purchased from Ecuador's Independiente del Valle two years ago for £4.5 million.
Brighton's head coach, Roberto De Zerbi, said in a statement on Friday that Caicedo was committed to the club and asked the 21-year-old to stay at the Amex Stadium over the summer.
Caicedo's current contract expires in two and a half years, and he is not expected to sign a new one. Brighton will thus conduct its due research on a prospective succession plan.
In addition, Caicedo has box-to-box abilities from a conventional No 6 position, patrolling the left of the center in both offensive and defensive halves nearly equally.
In the Premier League this season, he has only taken two shots from within the box and is far more likely to strike from beyond the area, where he has three goals from 10 long-range tries.
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