Shkodran Mustafi is set to stay at Arsenal after a potential loan move to Inter Milan fell through, a source has told ESPN FC.
Arsene Wenger had been willing to let Mustafi leave the Emirates after just one season at the club but Arsenal couldn't agree an acceptable deal with Inter, who had been looking for a one-year loan with an agreement to buy the Germany defender next summer.
A source close to the Premier League club said Mustafi will now remain at Arsenal barring any late surprises on transfer deadline day.
That also appears to end Arsenal's interest in West Brom defender Jonny Evans, who had been earmarked as the preferred replacement to Mustafi.
Evans remains a target for Manchester City, who are also expected to table a final bid for Arsenal's Alexis Sanchez before the transfer deadline.
Mustafi joined Arsenal in a £35 million deal from Valencia last summer but has apparently failed to impress Wenger and was dropped to the bench against Liverpool on Sunday.
Arsenal are also trying to offload Spanish striker Lucas Perez, who like Mustafi was a late buy last summer, with Marseille interested in the forward.