Denilson spent last year on loan © PA Photos Enlarge

Sao Paulo have confirmed Arsenal midfielder Denilson has extended his loan with the Brazilian club.

Denilson, 24, spent last season on loan at Sao Paulo, who he left for Arsenal in 2006, and he and the Brazilian club have recently expressed their willingness to prolong the deal.

On Thursday, Sao Paulo confirmed on their website an extension has been agreed, with the midfielder tied to the side until June 30, 2013.

Head coach Emerson Leao said: "Denilson has much quality and last season he performed well here. Arsenal, rightly, would not initially release the player.

"Fortunately we had high-level talks in England with the board and everything was settled for the extension of the player's deal. I am sure he will continue to be a benefit to the team."

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