According to a report in El Mundo Deportivo this evening, Arsenal and Barcelona have broken off negotiations over the loan deal for Denis Suarez, and it now appears as if the player will stay in Spain for the rest of the season.

The Gunners were unwilling to commit to a deal which would include a mandatory purchase agreement, something the Catalans were very keen on, but did offer a €2m loan fee.

In order to offset this, Barcelona wanted Suarez to extend his contract before agreeing to the loan, something he was unwilling to do as his current deal expires in 2020, leaving him with just one year to go in the summer and thus more attractive to potential suitors.

Arsenal had been hopeful of bringing in the 25 year old, who has worked with Unai Emery in the past, but unless something changes significantly in the next few days then he will remain a Barcelona player, even if it means he’ll remain on the fringes of their first team.

Emery was keen to a boost a squad which is currently involved in the top four fight, and still in the Europa League. Danny Welbeck, Rob Holding and Hector Bellerin have all suffered long-term injuries and there is a need to add some depth, but it now looks as if the Suarez deal is practically dead.

It’s not impossible that Barcelona are looking for a higher loan fee, but it remains to be seen if a club that’s unwilling to spend in January will be willing to meet those demands.