Arsenal boss Wenger willing to wait to take Chelsea's Kalou on Bosman
The People says the Gunners will now wait until the summer before trying to do a deal with the striker, who will then be a free agent.
Kalou, 26, who is on Africa Cup of Nations duty with the Ivory Coast, was open to a move but Arsenal were not prepared meet his wage demands on top of the likely £3million fee.
The player is now set to return to Stamford Bridge to see out the remaining four months of his contract. Wenger risks missing out in the summer if big-spending Paris St Germain - led by former Blues boss Carlo Ancelotti - also come in for Kalou.