Arsenal have rejected the chance to sign Dani Ceballos on a permanent deal.
Ceballos is due to return to Real Madrid at the end of this season.
And The Sun says the Gunners will not pursue a deal to keep the midfielder in North London.
The 23-year-old has not done enough to convince Mikel Arteta to sign him on a permanent basis.
It means Ceballos will now have to decide his next move, with Real boss Zinedine Zidane keen to offload him this summer.