English news outlet 'The BBC' reports that the 'Gunners' made a second offer of €50m (£43.6m) for the Gabonese striker on Wednesday, with Dortmund rejecting the bid out of hand.
The aforementioned source claims that Dortmund will only entertain offers of £50m and over for the 28-year-old, who has reportedly made his desire to make the switch to the Premier League clear.
Olivier Giroud has been linked with a move in the other direction as a makeweight in a potential deal but it is thought that Wednesday's offer was a straight cash bid.
With time ticking away until the end of the transfer window, Arsenal now face a major decision of whether to continue their pursuit of Aubameyang or move on to other targets.
Various high-ranking Arsenal staff are thought to be in Germany for talks, though no deal looks imminent as of yet, with the striker having trained with his current employers as normal on Wednesday.