Fran Merida will resist interest from Spain to remain with Arsenal.
The Sun says the Spanish teenager, who scored a stunner in last week's Carling Cup win over Liverpool, is out of contract at the end of the season.
Boss Arsene Wenger blocked a loan move to Levante last season. But fears have been mounting that he could quit the Emirates for nothing and return to his homeland.
Atletico Madrid are desperate to snap up Merida, 19, along with a host of other La Liga clubs.
But his agent, Joseba Diaz, insists the young striker wants to stay a Gunner.
Diaz said: "I am coming to London to discuss a new two-year deal with Arsenal with whom we have a very warm relationship."