But it is said this offer still falls below the Gunners’ valuation of the attacking midfielder.
Smith Rowe is expected to leave the Emirates this summer having fallen down the pecking order in Mikel Arteta’s side.
Last season, despite remaining largely injury free, he just made 19 appearances across all competitions, only four of which were starts, and is keen to secure first-team football even if that means leaving the Emirates.
Interest in the 23-year-old is high, with both Fulham and Palace having offers rejected earlier this week, with the Cottagers tabling their £25m bid.
It was thought that that would be enough to secure Smith Rowe’s signing, but talkSPORT now report that Arsenal want £35m for the England international.
This means Palace’s new bid may be rejected, but manager Oliver Glasner is determined to bring the player back to South London were he was born.
He is viewed as an ideal replacement for Michael Olise, who was sold to Bayern Munich in a deal worth upwards of £50.8m.
The Eagles have already signed attack-minded midfielder Daichi Kamada, who worked with Glasner at Frankfurt, on a free but the club want more firepower as they look to build on their top-half finish last season.
Fabrizio Romano also reports that Palace will soon make a decision on whether to snap up Ryan Sessegnon who is a free agent after leaving Tottenham earlier in the summer.
The left-back, who flopped at Spurs after a £25m in 2019, has been training with the Eagles and recently took part in a behind-closed-doors friendly against Bournemouth in the last few days.
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