Arsenal have confirmed that midfielder Denilson has extended his loan spell with Sao Paulo for the 2012-13 season.
The 24-year-old spent last term on loan in his native Brazil and has opted to remain with Sao Paulo, the club where his career began.
Denilson told Brazilian newspaper Gazeta Esportiva: "I didn't talk to Arsene Wenger.
"My lawyer and I met Sao Paulo's board and we agreed it would be better if I stayed at the club, and they reached an agreement with Arsenal."
Denilson, who made his Arsenal debut in October 2006, has made 153 appearances for the Gunners.