The midfielder made a huge impact at UEFA EURO 2020, scoring two goals against Switzerland in the group phase, and this earned him offers from Arsenal and Borussia Dortmund.
However, he has his heart set firmly on Juve and now they are trying to work out a deal with Sassuolo.
The opening bid of a two-season loan with option to buy for €30m was rejected outright.
Arsenal are prepared to offer €40m plus up to €5m in performance-related bonuses, so the Bianconeri need to match it.
The latest report from Sky Sport Italia suggests Juve are proposing a 25 per cent cut of any future transfer fee will go to Sassuolo.
It is a risky tactic, as that would assume Locatelli will in future move on at a profit.
The Neroverdi are unconvinced and the clubs will continue discussing other potential tactics to make the deal work.