Arsenal's talks over a deal to sign Barcelona midfielder Denis Suarez this month have reportedly broken down.
The two clubs were understood to have reached an impasse in negotiations earlier this week as they wrangled over a fee for the Spaniard.
Arsenal can only afford to sign players on loan during the January transfer window, but Barca want around €20m (£17.4m) for Suarez, who has 18 months remaining on his contract at the Camp Nou.
Barcelona are open to the idea of a loan deal as long as it includes an obligation to buy at the end of the campaign, but the Gunners are reluctant to agree to those terms.
ESPN FC reports that it now looks increasingly likely that Suarez will remain at Barcelona until the end of the season, despite being withdrawn from last night's Copa del Rey clash with Sevilla on the morning of the game to make room for new signing Kevin-Prince Boateng.
The 25-year-old has made only two starts and eight appearances in total this season, and Barcelona are still willing to let him leave this month should any team meet their demands.
Barney Corkhill
