Liverpool have told Arsenal that they will not sell Xabi Alonso for £10million.
It is claimed that the Gunners have approached the Reds to see if we would be prepared to do a deal at that price but Rafa Benitez isn't prepared to let him go so cheap.
Meanwhile the boss has revealed that following talks with Rick Parry, there could be some transfer activity within the next few days.
Rafa said: "We are working really hard, we are moving in the right direction and hopefully we can do something positive in the next few days.
"The talks were positive, we cannot discuss names but we are now both working to improve our squad.
"There was no friction, but some personal problems. Now things are more clear and that is positive. It was a private conversation."
On Gareth Barry, he added: "I have had no word about Arsenal wanting Gareth Barry, and that is all I want to say on the subject. Other than that we are working towards improving our squad.
"Likewise there has been nothing more on Xabi Alonso. At the beginning of the summer we were looking at ways of raising money, but now we are happy with Xabi, he is a very good player.
"The offer we had was not good enough, so why would we want to sell him?"