JAMES RODRIGUEZ is set to stay at Bayern Munich for the remainder of the current season, dashing any hopes Arsenal had of signing him.
The Colombian star has been linked with a move to the Emirates but ESPN claim a move is unlikely because Bayern now want to keep him.
And it is claimed a source close to the player revealed he is not interested in the move himself.
Rodriguez has six months left to run on a two-year loan deal with the German giants but has been frozen out of the first team by manager Niko Kovac.
It was claimed Arsenal could pay just £3million to buy him out of that contract in a deal that would have suited both parties.
Arsenal are struggling to find funds to make any signings in the January transfer window so are looking to bring some players in on loan if they can.
However, the report claims Bayern want Rodriguez to stay and fight for his future as he looks to secure a permanent transfer to Bayern from parent club Real Madrid in the summer.
They paid £11.5m for the initial loan and can sign the 27-year-old permanently if they pay another £39.5m at the end of the season.
He has played only eight times in the Bundesliga this term but scored three goals in those appearances
And manager Kovac says he needs to prove to him why he should be included in the first team more often.
“James is playing for his future,” the Croatian said. “I expect him to keep pushing.
“I see that he is motivated and focused, he wants to play more than in the past.”
Elsewhere, Gunners manager Unai Emery appears to be keen on finalising a deal for Barcelona midfielder Denis Suarez.
They are close to agreeing on a loan before making the signing permanent in the summer.
It was thought that a deal was close at the very beginning of January window but it risks becoming one of the most drawn-out transfer sagas of the winter window.
Spanish football expert Guillem Balague revealed that Barcelona were holding the deal up because they want Suarez, 25 to play against Sevilla in the Copa del Rey next Wednesday.