Locatelli has courted interest from several top clubs around Europe after impressing for Italy at EURO 2020.
The former AC Milan midfielder scored twice in five games as Roberto Mancini’s men were crowned kings of Europe for a second time.
Sassuolo confirmed last month that Arsenal have also made a bid for Locatelli but a deal is yet to materialize.
“We spoke to Sassuolo and we made our offer, which we believe is appropriate for the current climate, with the way finances and the transfer market have been affected by Covid,” Nedved explained to Sport Mediaset on Saturday.
“We are convinced this is a good offer and it is the right one. We are always confident, naturally in negotiations there are things that must be clarified and resolved.
"When you want a player and that player wants you, it’s clear."
The 23-year-old impressed for Sassuolo last season, making 34 appearances and scoring four goals as the Neroverdi finished in eighth place.
Locatelli has won 15 caps for the Italian national team and has scored three goals.
