The title chasing Gunners have had a bid for the midfielder rejected by Brighton, but they remain keen to sign him if the Seagulls will sell.
It has been suggested that Arsenal have gone back in with a fresh offer for Caicedo, but that talk is wide of the mark.
Arsenal have not followed up with a new bid for the midfielder, though they remain open to doing so if they sense Brighton will negotiate.
The south coast side have so far remained firm in their view that Caicedo is not for sale this month.
They do not want to lose the midfielder and believe the situation will settle down when the transfer window has closed.
Caicedo meanwhile has made clear his desire to move on this month, something which resulted in Brighton telling him to stay away from the club until after Tuesday’s transfer deadline.
Brighton have the Ecuador international locked down on a contract until the summer of 2025.