Sky Sports News understands Fulham goalkeeper Mark Schwarzer will not be joining Arsenal before the end of the current transfer window.
The 37-year-old shot-stopper has been the subject of a long transfer saga this summer, and the Australian was widely tipped to sign for the Gunners after strong interest from Arsene Wenger.
Fulham have rejected two bids for the experienced keeper, the latter a £4million offer, and Schwarzer was keen to make the switch to the Emirates Stadium.
Cottagers boss Mark Hughes even launched an attempt to land Manchester City's Shay Given, preparing for an imminent departure from Schwarzer.
However, City boss Roberto Mancini has persuaded Given to stay at Eastlands, dealing Arsenal's hopes a blow.
Schwarzer is now set to remain at Fulham and could return between the sticks for their next game against Wolves on 11th September.