It had been suggested that The Gunners have already negotiated a deal with Birmingham that would give them first refusal on signing the 24-year-old, but Brady told the club's official website that the rumour is nothing more than a "fabrication".
"We have had no communication with any other football club, including Arsenal, regarding the sale of any of our players," said the City Marketing Director.
"We can only assume this story has been fabricated by agents or journalists.
"In the meantime we will be sitting down with Darren Purse in the next week or so to discuss a long-term contract."
