Arsenal have rejected Atletico Madrid's bid for forward Jose Antonio Reyes.
Vice-chairman David Dein confirmed the offer for the 22-year-old Spain international had been turned down by the Gunners, and suggested Reyes may stay at the Emirates Stadium this season.
'They have made an offer which has been rejected,' Dein told Sky Sports News.
'He is an Arsenal player and may very well remain an Arsenal player.'
Atletico president Enrique Cerezo had earlier confirmed Atletico's firm interest in Reyes.
He stated that Atletico had lodged 'an important offer' for Reyes and denied his club would have to offload any players to finance the deal.
Reports in Spain said Atletico had made a bid for Reyes in the region of £8.1million.
However, Arsenal were reported to have placed a £12.2million price tag on the Spain international who has made no secret of his desire to return to the Primera Liga.
Real Madrid were long seen as the favourites to land the former Sevilla player but their city rivals have stepped up their efforts to bring him to the Vicente Calderon stadium instead.