Sky Sports can confirm Denilson is free to leave Arsenal after cancelling his contract by mutal consent.
Denilson, who has spent the last two seasons on loan at Sao Paulo, had a year to run on his current deal, but both parties have agreed to an early termination.
The 25-year-old has found himself down the pecking order in Arsene Wenger's plans and the Frenchman agreed to loan him back to his homeland in the summer of 2011.
Wenger is now willing to let Denilson quit the club for good as he looks to reshape his squad ahead of next season.
Denilson's agent, Alexandre Soares, has confirmed the midfielder is free to leave Arsenal and that a number of clubs are weighing up moves for his services.
"I can confirm Denilson and Arsenal have agreed to terminate his contract at the end of this month," Soares told Sky Sports.
"Denilson is free to move to another club and a number of clubs are interested in him.
"I do not want to name teams, but there is interest from Brazil as well as Russia, Italy, Germany and Turkey and I am talking to them.
"No decision has been made and we will assess all offers that come our way.
"If Denilson does stay in Brazil, Sao Paulo has the priority, but I do not rule out him moving to another Brazilian club as well."
Denilson joined Arsenal from Sao Paulo in August 2006 and has made over 150 appearances for the club.