Spanish winger Nolito has reportedly turned down a move to Arsenal in favour of a return to La Liga champions Barcelona.
The Gunners had been linked with a winter move for the 29-year-old, with manager Arsene Wenger said to be considering offering Celta Vigo the services of Joel Campbell in an effort to reduce Nolito's £12.6m price tag.
According to Spanish publication Sport, Nolito has instead expressed his desire to return to Camp Nou, which he left for Benfica in 2011.
Wenger is also rumoured to be plotting a club-record £42m bid for Bundesliga top scorer Pierre-Emerick Aubameyang as he goes in search of the Londoners' first Premier League title in 12 years.