Manchester City coach Mikel Arteta has withdrawn his application for the Arsenal job.
The Sun says Arteta was odds-on favourite with the bookies to become Arsene Wenger's successor at Arsenal.
Arteta wanted assurances he would have control over transfers if he was to take over.
But he is now believed to have withdrawn from the running after initial talks with the club.
Most bookies have stopped taking bets on Unai Emery getting the job.