Sky Sports sources understand that Arsenal are no longer interested in signing centre-back Gary Cahill from Bolton.
The Gunners tried to land Cahill last week but their offer fell well short of Bolton's valuation and was rejected.
Owen Coyle later insisted he would not stand in the way of the defender joining a big club if a suitable bid was made, and it was thought that Arsenal could return with an improved proposal.
Arsene Wenger's need for reinforcements at the back was highlighted during a humiliating 8-2 defeat to Manchester United at the weekend.
But he has now turned his attention elsewhere and is expected to bring in Per Mertesacker from Werder Bremen before Wednesday's transfer deadline.
The giant German is travelling to London to undergo a medical and will reportedly put pen to paper on a four-year contract.
Arsenal are also believed to be closing in on a deal for Fenerbache's Brazilian full-back Andre Santos.
The chances of Cahill staying at Bolton beyond this summer now appear significantly increased, although Tottenham have been linked with a late move for the 25-year-old.