Everything seemed to be heading in the right direction for the Uruguayan star to make a permanent switch to the Italian club after his loan spell.
However, the expected deal is now in the danger of not going through as the Italian club are not willing to pay the Gunners’ asking price.
Arsenal are demanding €15m for the midfielder which Fiorentina think is too much money for him, but the transfer could still happen.
Fiorentina are continuing talks with Arsenal to try to find a solution, but according to Italian daily La Nazione, they are not prepared to wait beyond the end of the month.
If they cannot find an agreement then they will look at other options.
Torreira impressed for the Serie A team in his loan spell, making 31 league appearances and scoring five goals, and the fans have hung banners outside the Artemio Franchi Stadium demanding the club sign the midfielder permanently.
It remains to be seen whether an agreement to keep Torreira at Fiorentina on a permanent basis can be found.