The 23-year-old – who is currently representing Jamaica at the Gold Cup – has now entered the final two years of his deal with Leverkusen and has been linked with a summer exit.
The Gunners were rumoured to have been interested in a deal for Bailey, who ended the 2020-21 Bundesliga season with nine goals and nine assists from 30 appearances.
However, Football Insider claims that Arsenal have ended their interest in the attacker after becoming aware of ‘attitude issues’ while scouting the player.
The report adds that Aston Villa – who beat Arsenal to the signing of Emiliano Buendia earlier this summer – are now at the head of the queue for Bailey’s signature as the Gunners eye alternative options.
Bailey has claimed one assist from two appearances at the Gold Cup so far, with Jamaica set to face the USA in Sunday’s quarter-final.