Arsenal's hopes of landing Lyon's Houssem Aouar have reportedly ended after the player communicated his desire to stay at the Ligue 1 club.
Gunners first team manager Mikel Arteta is desperate to add a creative midfielder before the transfer window closes on Monday, with Aouar understood to be the number one target.
The Lyon captain has been the subject of a bid from Arsenal and talks had been ongoing between the clubs after the Gunners saw an initial bid rejected by the Ligue 1 club.
There was an expectation that the north London side would return with an improved offer to seal a deal, but according to RMC Sport, Aouar emerged from a meeting with the Lyon hierarchy on Saturday and announced to his teammates that he would be staying at the Groupama Stadium this season.
Lyon president Jean-Michel Aulas previously set a deadline of Friday evening for all potential departures and admitted that Aouar could be among them if any club met the midfielder's asking price.
But Arsenal could not make a breakthrough in negotiations, and the Gunners' hopes are seemingly over.
The failure to sign Aouar means Arteta faces a race against time to land a new central midfielder before the deadline.
There is interest in Atletico Madrid's Thomas Partey but the La Liga side will not sell unless a club meets the Ghana international's £45 million buy out clause, something Arsenal will struggle to do unless they can sell some of their fringe players.
Another reported alternative is Chelsea's Jorginho, and ESPN journalist Julien Laurens claims that Arsenal will now try and make a move for the Italy midfielder.
The former Napoli star has been linked with a move away from Stamford Bridge in this window, with Paris Saint-Germain also reportedly interested in his services.
Ahead of Arsenal's Premier League clash against Sheffield United on Sunday, Arteta said he was confident the club would do all they could to land their key targets.
“I am very confident with what we are trying to do internally," Arteta said in his pre-match press conference on Friday.
"The clarity from everyone in the club most importantly to get balance in the squad."