Previous reports from the UK claimed Arsenal were planning a sensational offer to bring the Real Madrid superstar to the Premier League as contract extension talks continue to stall in Madrid.
The 26-year-old is yet to commit his future to Los Blancos, with negotiations ongoing since the end of 2025, and he is now into the final 12 months of his agreement in the Spanish capital.
A bid in excess of £120M would have been required to pry him away from the Estadio Bernabeu and Arsenal were willing to offer that figure if requested.
However, the latest from the Gunners camp indicates they have now given up on a possible deal, with sources close to Vinicius informing the Premier League champions of his intention to stay in Madrid and sign a new mega-money contract.
Arsenal will continue to monitor the situation, but Mikel Arteta is already looking at alternate options, including long standing target Nico Williams.